Chapter 2. Concentrate. Diversify Not
“Our policy is to concentrate holdings. We try to avoid buying a little of this or that when we are only lukewarm about the business or its price. When we are convinced as to attractiveness, we believe in buying worthwhile amounts.” | ||
| --Warren Buffett, in a letter to Berkshire Hathaway Shareholders (1978) | ||
Diversification is a lazy man’s game. If you are a passive investor and care little for powerful results, diversification is your can of alphabet soup. This chapter advocates portfolio concentration versus diversification.
The widely popular strategy of diversifying a portfolio has ardent followers. and to some investors, particularly the large institutional investment managers, diversification is a handy way ...
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