3 ms·
My understanding is Warren Buffett prefers a small number of large concentrated positions (the details of each position has presumably been carefully studied by
by basementcat 2y ago
My understanding is Warren Buffett prefers a small number of large concentrated positions (the details of each position has presumably been carefully studied by him or Berkshire staff) over a large number of more modest positions (for that, you can just buy an index fund).
- TheAlchemist 2y agoExactly. Warren & Charlie said for years, that diversification is good for average investor, but if you do have some special insights into an investment area, you should bet heavily if the right opportunity appears. To quote Charlie Munger: "The idea of diversification makes sense to a point - if you don't know what you're doing"