#413 – Bill Ackman: Investing, Financial Battles, Harvard, DEI, X & Free Speech
Lex Fridman Podcast
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*Invest in around a dozen companies: that’s enough diversification *
While there are thousands of mutual funds available, only a few justify the fees they charge due to being too diversified and too short-term. It is often more beneficial to invest in an index fund. Some exceptional mutual fund managers like Will Danoff and Peter Lynch do stand out. Similarly, when it comes to stock diversification, the benefits peak with the first 10-12 stocks in a portfolio. Diversifying beyond this point offers diminishing returns, making it more advantageous to focus on a smaller number of quality companies.
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