MORE MAD MONKEY

I know that at times I harp on the Mad Monkey guy but this morning I was surfing around and saw some startling information in his Real Money book. It is RULE #11 and I had to read it twice to make sure that I read it accurately. Here goes:

"I never will buy a stock without first taking one off. That's a great discipline and one you should adopt, pronto. All the bad money managers I know have hundreds of positions. All the good ones have a few that they know inside out and like on the way down. "

That's why I say:


"Don't own too many stocks"


"When I lost the most money, by the way, my "sheets," my position sheets, were as thick as a brick. When I made the most money, my sheets were, well, one sheet of paper, double-spaced. And I ran hundreds of millions of dollars.
Please remember that whether you are a pro or an amateur, you can always have too many positions. Don't own too many stocks."

So Rule #11 is "don't own too many stocks." I agree 100% and I will not own a lot of stocks. My question; Why does he pick different stocks to own every night of the week on Mad Money, and why doesn't anyone ask him how he can so blatantly break one of his sacred investing rules. According to this site, he has now made 667 stock selections. I guess my second point is "he can no longer beat the market because he actually is the market."