This video cuts straight to the point from the straight from the horses mouth.
He makes an interesting point, and it’s all well and good if you an expert at analysing businesses. However, I’d suggest that many who are relatively new to investing (and indeed, a fair proportion of more experienced investors), are more risk-sensitive because they don’t have such advanced knowledge to value businesses in this way.
It’s likely that I possess the ignorance that he refers to in the video. I really can’t say with confidence that my investments are going to perform well, and as a result, I’m going to diversify the hell out of my portfolio.
James Anderson (Joint Manager of Scottish Mortgage Investment Trust) & Howard Marks also share Buffet’s sentiment on diversification.
They say that but then there largest position is 10% of portfolio
This is true however they are playing with massive sums of money. So they don’t have the choice now they have to buy the value where they can find it
If you look at their holdings, they are holding many different companies. That does not sound like non-diversified. Indeed, not all sectors are that prominent but it is not a 3-stock portfolio. So what he is preaching is not what he is practicing.
He is following his own advice his personal wealth is one company only Berkshire