Posco (PKX)

I purchased Posco (PKX) two months ago about $1 cheaper than it is today. The stock has been on a downward spiral the last week due less than expected earnings, because of the flood in Australia. The increase in price of coal used to smelt iron ore in the steelmaking process really took a bite out of earnings in the 4th quarter. However, this is a temporary setback and I believe Posco is in an excellent position to benefit from the surge in demand for steel in Asia over the next 5 years, while still trading at a very reasonable earnings multiple. Mohnish Pabrai is also a fan of the stock, and he has been one of my favorite value investors to watch over the last few years. I have 90% of my portfolio tied up in this one stock, and if I had anymore free cash on hand I would be picking up shares after last week's dip. What do you guys think of the stock? My primary concern is tensions on the Korean peninsula, but I've decided that is a risk I'm willing to take at this price.

I do realize everyone is going to tell me that a novice investor such as myself would be better off putting my money into an ETF or mutual fund, and putting my entire portfolio in one stock is very risky. But from my point of view, diversification is not right for me for the following reasons.

-I would be less likely to pay attention to what is going on if I threw my money in an ETF and I view this as a hands on learning experience.

-I only have $4,600 in my account so it is difficult to properly diversify without going into an ETF, or mutual fund.

-I am more of a high risk/high reward type of investor when my own money is at stake.

-I am very confident this stock will outperform the market over the next 5 years.

-I have a stop-loss set at $85.00.