I read the excellent book, The Zulu Principal, a long time ago. My memory may be askew, but I think we learn that it may be better to concentrate on a few companies than invest in a lot. The theory, I suppose, is that its better to get to know a company in detail than to know just a bit about it.

I dont always play it this way. I believe that owning a lot of companies rather than a few minimises the risk. This is undoubtedly true. But I suppose we could just buy unit trusts for the same reason. These are a good way of investing in lots of companies and they also spread the risk.

Not very exciting though is it? We also have to pay the managers of the trust, so they spend time picking shares for us. As well as forking out for the general administration involved. Im not knocking unit trusts. They are a more adventurous way of saving than putting your loot into a building society. And they carry quite a bit of risk, as theyre likely to fall when the whole market falls.

But I prefer doing shares. This is because I have time to research them myself. And I hope to make more money by making the decisions myself. Toget back to the Zulu Principal by Mr Slater, I can understand the merit of only investing in a few companies because you have a better chance of getting to know a handful of companies backwards.

This is why a lot of Crazies invest in shares and stay with that company. Buying and selling the shares yes, but always returning to them over the years. The snag is that if you spread your money thinly, a few firms going down can almost wipe you out. If a few of my firms go bang, I hardly notice, given the large number of outfits which still soldier on.

A matter of personal choice, of course. Dont let me influence you either way. Perhaps some sort of compromise might also be tried. God bless.