Warren Buffet said, "Diversification makes very little sense for anyone that knows what they’re doing." He also said, "Diversification is a protection against ignorance..." Most of us need that protection against ignorance, yet diversification often makes us feel bad when some of our holdings don't do as well as others. We make the case why we should diversify anyway.

Topics covered:

Warren Buffet says it's crazy to own more than 30 stocks, but Berkshire Hathaway owns 48 stocks
What does it mean to analyze a business
How have U.S. stocks performed relative to non-U.S. stocks long-term
What has driven the outperformance of U.S. stocks and what has to happen for it to continue
What are examples of diversification plays just in case the U.S. falters

For more information on this episode click here.

Show Notes

Warren Buffett and Diversification—GrahamValue.com

The Complete Berkshire Hathaway Portfolio by John Divine U.S. News

The Business Cycle Is Different Than The Economic Cycle - Crestmont Research

EU Natural Gas—Trading Economics

Related Episodes

254: Should You Be 100% Invested In Stocks?

275: Are You Over Diversified?

364: Should You Hedge Your International Stock Exposure Against Currency Fluctuations?

Sponsor

Masterworks – invest in contemporary art

See important Regulation A disclosures at masterworks.io/cd

Since inception, Masterworks has sold six paintings from the collection. IRR is net of all fees and expenses and is presented on a deal-weighted basis, which assumes the same investment amount was made in each applicable offering. In certain cases, Masterworks may concede its fees and/or profit sharing in connection with the sale of a painting for the benefit of the shareholders. Net IRR was calculated assuming all fees and profit sharing to which Masterworks was entitled were charged to the issuer. IRR on sold artwork is not indicative of Masterworks’ overall performance or future results.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Arena Club's Founder Talks the Future of Collecting; Whatnot to Regulate Repacks

Sports Cards Nonsense

Will Arena Club Expand Into TCG and Nonsport?

The AI-powered Podcast Player