6 Comments

Yes, concentration can be better for building wealth, for example, successful startup founders or going all in on NVDA, but the increased level of risk can't be ignored. That being said, it's up to the investor to do their research and decide if they are comfortable with taking the risk.

Expand full comment
Feb 22Liked by Harry Harrison

Diversification (=index funds) is the way to go for most retail investors. Unfortunately, they focus on the wrong things when analyzing public companies, e.g., ratios. Just to be clear about WB, the man himself is diversified. I saw a list of Berkshire Hathaway's holdings as of the middle of November '23, there were 45 stocks in there. That's not concentration.

Expand full comment