Complete Growth Investor

About Pinnacle Airlines, and Concentrated Risk

94487,

Look at the second page of his ownings in the 13-F. He still owns Wellcare in the same amount.

101010,

I agree that the small and micro cap field can indeed be filled with landmines. I don't think that's any reason to ignore it, though.

You do need to be filled with a sense of risk and be looking for risk under every rock. As I'd highlighted in the article, risk is everywhere and, in small caps with no moat especially, you really need to be atuned to all of the risk factors that could cause your investment to take a big hit.

Maybe Mohnish didn't take enough caution, I'm not sure. Maybe Pinnacle will triple from here. I can't make that judgment. But there are some obvious lessons to be taken from a company, in this case PNCL but that includes many companies, that rely on only a few companies for business. The "tail risk" grows in that proposition.