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Indeed, investing in just the S&P 500 would be an example of poor diversification: you'd limit yourself to US large cap stocks. By recommending the S&P 500, War
by thebear 12y ago
Indeed, investing in just the S&P 500 would be an example of poor diversification: you'd limit yourself to US large cap stocks. By recommending the S&P 500, Warren Buffet is saying, implicitly, that he believes in US large caps to the extent that he does not even want to diversify.
- tempestn 12y agoI would give him the benefit of the doubt and assume he was simply picking an index everyone has heard of. But regardless, yes, it would be poorly diversified.