A Lot of Stock in a Few Investments - #5552
Tuesday, April 22, 2008
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Now I am not much for playing board games. That's B-O-A-R-D games, because I usually end up bored like the other spelling. But there's this one game we have played over the years - it's called "Acquire" and I like it. We don't play it often, but my wife usually wins. (Maybe that's why we don't play too often.) Now in this game there are seven hotel corporations and you win a game by having the most valuable stock at the end. Now I think I know why my wife always wins. She doesn't make the mistake of buying a few stocks in a lot of companies which a lot of us do. You don't know which ones are going to take off, so you get a little in each one. She is very good at anticipating which company is going to grow, so she invests heavily in that company. She ends up with the majority in it. She gets this big bonus at the end of the game. Meanwhile I'm sitting there with lots of stock, but it's in several different companies and it just isn't worth as much as a lot of stock in a few companies.