DAILY WALL STREET WISDOM · #012
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“Wide diversification is only required when investors do not understand what they are doing.”
🇺🇸Warren Buffett
CEO, Berkshire Hathaway
WHAT IT MEANS
If you deeply understand a few businesses, concentrating your portfolio can lead to superior returns. Over-diversification dilutes your best ideas and is often a hedge against ignorance rather than a strategy.
fundamentals