A Smart Speculation

Andrew Feinberg shares his latest stock pick: Communicate.com

I was going to call this column "Taking a Smart Flier" until I started reading definitions of flier. Among the nicer entries was one suggesting that it was the investment equivalent of a Hail Mary pass. So forget fliers -- even though my top pick for 2008 is a stock that some might consider risky. I don't, and I want to explain how such a seeming long shot can actually be a prudent investment. Indeed, you can aim for huge gains without desperately hurling your wallet toward the end zone.

Why do so many amateur speculators come to grief? Money manager John Train knows: "In all games, the difference between the amateur and the professional is that the professional plays the odds, while the amateur, whether he realizes it or not, is, among other things, a thrill seeker."

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Andrew Feinberg
Contributing Columnist, Kiplinger's Personal Finance
Feinberg manages a New York City-based hedge fund called CJA Partners.