12-16-2004, 04:18 AM
Abramelin,Dec 16 2004, 09:54 AM Wrote:You can lose money from long term investments;remember Enron? All those retired people who relied on their pension funds to pay the pensions;now they have no money left to live...
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Anyone with a clue about investment will tell you to diversify. Having all your money with one company/industry/sector/country is riskier than having it spread accross multiple. The amusing thing is that you can diiversify away a lot of your risk while still keeping most of the return.