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Graham and Buffett are investors in the truest sense: they invest in the business, not in the stock. They deal with the managers directly. That is not what most
by cheez 9y ago
Graham and Buffett are investors in the truest sense: they invest in the business, not in the stock. They deal with the managers directly. That is not what most of us do. That is why diversifying in such a situation increases risk: you only have so much mental attention.
- valuearb 9y agoNo. Graham was a stock market investor. Buffett never bought a company till nearly 20 years into his career. Buffett and Munger believe in focused portfolios when you are investing in stocks, why put 5% into your 20th best idea when you can put 10% in your 10th best idea? In reality most of us should not buy public equities, we should be in index funds.