Money For the Rest of Us

Why Diversifying Your Portfolio Feels So Awful

Sep 7, 2022

26:31

Highlights

AI Chapters

Episode notes

Investing in Master Works

04:02

Diversification Is a Protection Against Ignorance

04:17

Why You Shouldn't Diversify

02:25

Introduction

3min

Stock Picking

3min

Diversification Is a Protection Against Ignorance

4min

Stock Market Returns - What Are the Building Blocks of Stock Returns?

4min

Can You Survive a Recession?

2min

Investing in Master Works

4min

Wisdom Tree, Emerging Markets, High Dividin E T F, D E M

3min

Stock Market - Is the Us a Good Place to Start?

3min

Why You Shouldn't Diversify

2min

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?

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