As most investors are fully aware, diversification is the primary root to a successful and long term investment strategy. Putting an entire investment into one basket never has made any sense at all. In many instances, however, companies and investors have little option as they start a business or work to invest in a methodical fashion. But, if an investor can find a company that has done the diversification for them, a profit might be found.

National Patent Development Corp., a home decoration and improvement products supply company, works to supply local retailers with associated home improvement and decoration products, through its Five Star wholly owned subsidiary, primarily in the (Metro New York) North East. As conditions warrant, the company has plans for expansion into the Mid-Atlantic States.

Although playing with the big-boys of the home improvement products marketplace can be challenging, the company has found solid acceptance for its product line. For the most part, this acceptance has hinged on access and distribution to the customer preferring to avoid big-box stores or with limited access to them. In fact, it is the company's distribution network and recent activities with Right-Way Dealer Warehouse Inc. that makes it attractive past the paint sundries items, stains, caulking compounds and hardware products it typically offers.

Through various agreements, the company has become involved with Indevus Pharmaceuticals and XML Industries with forward looking investments. With respect to Indevus Pharmaceuticals, the company has acquired common share rights through two contingent tranches of shares, once certain milestones have been reached. Its activities with XML Industries, which works with optical plastics and precision coatings, involves various ownership agreements.

From all appearances, National Patent Development Corp. is not your run of the mill hardware retail supply company. It has organized in such a way that it should come through current home related difficulties in ok shape while realizing benefits in its other activities as they proceed in markets that are relatively less affected by current conditions.