Originally Posted by mdccclxix
True, I know that diversification is recommended, but at the same time it can weigh you down, right? This goes up, that goes down. But picking a stock that has a solid reputation and a solid future in terms of where the world is going, that is also on a down beat, could pay off if you're patient. That said, a) I'm young and not risk averse b) I set up a fake portfolio at google finance in 2009 when everything was down and went 9 for 10 in picking winners, so that's not likely to be as easy as it was then.
You know, this goes totally "against the book" on investing, but it is something that as a young investor you can afford to take that chance on.
If there is something that looks "so right" that you can put a big chunk of your investable assets into it, do it. You'll kick yourself later if you didn't.
The reason is that you can expect to continue to earn (and save for retirement) for the next 30 years. As you age, you can become more conservative. Want to take a shot? Now's the time.
I'm in my 50s now, and most of my clients are also, but in my 20s and 30s I took a number of flyers. Some paid off spectacularly (I made out like a bandit in the Venezuelan stock market in 1990-1 and turned my meager savings into a fully paid condo) and others not so much (I joined a group trying to take over a ceramic tile producer...crappy group, crappy industry, crappy company, crappy result...). And lots of stuff in between...
Thing is...if you have skills to fall back on and manageable responsibilities , you can be looser with your investments when you're young.
And...you can't tell anyone I said any of this, the investment advisory community would kick me out immediately.