Investors who prudently spread out their assets have consistently made less money than hotshots who go for broke. But it's still an issue that drives us crazy. No other type of investment even came close. Technology, by definition, is on the leading edge of change. Change spurs growth.
Growth spurs profit.
This kind of market can make you seriously doubt the wisdom of diversifying your assets. Our gut tells us that this is dangerous thinking, even though it seems to be the philosophy of the day. So we teamed with Morningstar, the respected fund-rating firm, to take a hard look at the results of diversification. This last question, the risk of a portfolio, is supremely important but difficult to predict. You'll see some of our findings in the bar charts over the next few pages, and we think you'll notice some interesting results.