Adrian Mastracci, president of KCM Wealth Management says, "Quite often, emotions take over and investment decisions are compromised."

For Immediate Release

Vancouver, BC (February 6, 2002): It is reported that about 15,000 Enron employees lost about $1.3 billion in their 401(k) plans, which held more than one-half of the assets in Enron stock.

Generally, both Enron and the employees contributed to these plans. However, employees voluntarily purchased the majority of the shares and, for many, these plans were their major investment.

Adrian Mastracci, fee-only investment counsel & president at Vancouver based KCM Wealth Management comments, "Investing is about setting a course to achieve a specific return to meet personal long-term goals. It becomes a real dilemma when investors believe that the fortunes of the employer's stock are superior."

"Quite often, emotions take over and investment decisions are compromised," says Mastracci, "The seemingly glowing prospects can make investors do things that they later regret. Enron is an example of the devastating consequences."

"Hence, investors are well advised to limit exposure on all individual stock investments, especially when the company is also their employer," indicates Mastracci, "In baseball, it's preferable to get on base frequently, rather than aiming for the home run every time. The same applies to investment portfolios."

"A portfolio consisting of one or two selections is a low percentage strategy fraught with financial dangers," notes Mastracci, "The occasional investment home run is exciting, but the losers inflict serious portfolio damage."

"A prudent strategy to consider is that no single stock investment, regardless of its prospects, ought to represent more than 4% to 5% of a portfolio," summarized Mastracci, "An appropriate level of portfolio diversification is one foundation of successful investing."

"Portfolio diversification would have assisted many of the Enron employees," concludes Mastracci, "There is nothing wrong in building a portfolio one brick at a time."

NOTE: The information provided above is intended for general informational purposes only. It does not constitute advice for anyone's specific situation. Everyone should always first consult directly with their advisors to determine the appropriateness of any information contained above before taking any action. KCM Wealth Management Inc. assumes no responsibility for any loss or damage arising from the use of, or reliance upon the above information.