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Friday Nov 26, 2004

12:30 AM Wake up + start thinking about near-term investments. Here's a summary of "decisions"

1) I don't need any more small-cap tech stock due to Planet Out and I don't need any small cap stocks in general because I've seen that they don't outperform the whole market, probably because they include lots of old stable small companies. [side note] and I love [illegible] more than small cap techs as a whole [/side note]

2) I do want more mid-cap tech stocks, in any industry, such as medical devices, nanotech, imaging, etc. Because I can + will get a lot of these via NASDAQ 100 ETF, I should print out info sheets on all 100 and see their range of cap'n and (small) number of profitable years.

3) Because I'm also not interested in selecting stocks by growth vs value and doing so with industry as a proxy for risk is inaccurate, I believe selecting with a screen of company age will be best. And I believe the NASDAQ 100 gets me newer companies than the NYSE. Confirm this by finding the minimal listing requirements of NYSE.

4) If the smallest cap of the companies in the NASDAQ 100 is $1B or so, then I will be done with buying. Otherwise I may want to consider setting up a personal index fund of NASDAQ tech stocks. [Later I decided to use calvert small cap]

5) Buy the calvert small-cap fund at ML to get the functionality of social activism for some of the small cap stocks that I own, thereby making use of my ML free assets