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The Best Insurance Policy Is to Diversify
Graham was a huge believer in diversification, and buffet and munger are not. Great investors will tend to be under diversified great active investors because they feel, or their experience tells them, that they should concentrate. The problem with that is people aren't very good at assessing how valid they r sig s of confidence are. And it's part of normal human behaviour to be over confident about the things you're over concentrating on.
IN THIS EPISODE, YOU’LL LEARN:
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