youying

I am 100% in...especially considering we are closing to the end of the economical cycle, any buys should be opportunistic because diversification cannot prevent the systematic risks that is coming to the end of this economical cycle. if you ask me this question in 2009, my answer will totally opposite. it really depend on when you are asking this question.

benjaminyyfli

I think diversification for the sake of diversification is bad. If you have done your homework and are certain about your valuation and investment thesis, I will say go all in. This is provided that you can stomach the ups and downs of your entire portfolio tied to a single stock.
Personally I will concentrate on stocks that I am confident in. The biggest holding in my portfolio is 34%, and I still wish I'd bought more.

div1g4in

WHat is your risk:reward for this? How much you are able to lose for this trade/investment it is goes opposite of your plan?

fanoflynch

Reply to @div1g4in : It would depend on why it went down of course :) At $0.005 per share but the company's business is still the same, I wouldn't give up. But at what situation would I give up, is if coal or the company becomes worthless, or realistically, long-term business outlook is going to be poor.

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