Buffett has difficulty finding understandable businesses with sustainable competitive advantages and excellent managers that also sell at discount to their estimated fair values.
Therefore, his investment portfolio has often been concentrated in relatively few companies.
Buffett rejects the idea that diversification is helpful for the INFORMED investors.
On the contrary, he thinks the addition of an investor's 20th favourite holding is likely to lower returns and increase risk compared with simply adding the same amount of money to the investor's top choices.
Therefore, his investment portfolio has often been concentrated in relatively few companies.
Buffett rejects the idea that diversification is helpful for the INFORMED investors.
On the contrary, he thinks the addition of an investor's 20th favourite holding is likely to lower returns and increase risk compared with simply adding the same amount of money to the investor's top choices.
No comments:
Post a Comment