Stock Picks Update

To help readers of this site, I have grouped Initial Stock Picks into one category and Stock Updates into another category. You can find the posts in each category by clicking on the appropriate link on the middle right side of the site. For the record, to get my recent recommendations, just read more of this post.

Recent picks have been as follows: INLD (at $3.05 - still holding), PLNR (at $9.50 - still holding), BVF (at about $15.50 - still holding), RBAK (at $10.05 - still holding), PILL (at $5.50 or so - sold for tax loss), GHM (at about $14 - still holding), TTES (at about $12.15 - still holding), PGS (at $22, still holding), IIP (at about $0.40 - still holding), BVI.TO/ BRVTF.PK (at $8.35), and CCEL (at $3.50 about a year ago - still holding).

Please note: Some picks were posted on Yahoo´s KDE board before I started this site. I´m also long SU and a handful of other stocks, which I bought quite awhile ago (e.g. SCHK, BABY).

As you can see, I´m quite diversified. Buffett is fond of saying that diversification in investing is simply a symptom of ignorance. I couldn´t agree more. I don´t pretend to fully understand all the businesses I invest in and I have not a clue what the future will bring. In addition, I don´t quite trust management to be on the lookout for the benefits of the small shareholder. Ironically, I am also a bit of a cynic when it comes to the stock market, having come to the conclusion that the investment game is very much irrational, a la Keynes. As such, given these circumstances, I´m content to  keep a highly diversified portfolio of  stocks that others deem as "risky", but I find, after analyzing the businesses, to in reality have low downside and significant upside.

As for Buffett, I´m not quite sure he is as concentrated in a few stocks as a cursory analysis would imply (have you ever seen how many businesses this guy actually owns). In any case, that point is somewhat moot and irrelevant. The more important fact is that he generally owns 100% of the companies he buys and when he doesn´t, he owns enough shares to have a significant say in how the business is run. Under those situations, diversification may not make sense. But, if you are a minority shareholder with little or no say, you better be diversified or you will lose your shirt one day (I know I did).