Concentrated portfolios are the only way to generate outsized returns. Diversification is for people who don't know what they're doing.
Don't diversify for the sake of it. If you have conviction, concentrate.
Most investors diversify because they don't have conviction. We owned three stocks that made up 80% of the fund because we understood them completely.
Diversification is a protection against ignorance. It makes very little sense for those who know what they are doing.
Our goal is to buy a dollar of value for 60 cents. When we find that we buy a lot of it.
I made a lot of money for a long time and then I gave a lot of it back. That is the story of concentrated investing.
I learned from Julian Robertson that concentrated positions create the biggest returns.
Concentration works in markets. In retail, it's a different game. Customers don't care about your portfolio theory.
Ten positions, high conviction. That's the whole strategy. Diversification is for people who don't do enough research.
Most hedge funds own 50 stocks. I own 10. If you really know your businesses, you don't need 50.
Diversification is a hedge against ignorance. If you've done the work, concentrate.
I don't do 50 deals a year. I do 5. But I go deep on every single one.
I'd rather own 100% of something I understand than a diversified portfolio of things I don't.
Diversification is an admission of not knowing what to do and an effort to strike an average.
The greatest investment reward comes to those who by good luck or good sense find the occasional opportunity in a lifetime to put all their resources in one investment almost certain to pay off hugely.
I would rather own a real piece of a few companies I understand deeply than a little bit of everything.
We run a concentrated portfolio. A few big bets, not a hundred small ones.
Concentration is a double-edged sword. When you are right it is glorious. When you are wrong there is nowhere to hide.
We would rather own a few networks we deeply believe in than a hundred we do not.