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To: KevRupert who wrote (230)	5/16/2001 11:39:35 AM
From: KevRupert	Read Replies (1) of 252

One Stock: Warren Buffett Quote -------------------------------------------------------------------------------- Warren Buffett: "The great personal fortunes in this country weren't built on a portfolio of 50 companies. They were built by someone who identified one wonderful business. Coca-Cola's a great example. A lot of fortunes have been built on that. And there aren't 50 Coca-Colas. There aren't 20. If there were, it'd be fine - you could own a lot, diversify like crazy among that group and get results that were the equal of owning the really wonderful ones. But you're not going to find [that many]. And the truth is you don't need to. A really wonderful business is very well protected against the vicissitudes of the economy and competition over time. And I'm talking about businesses that are resistant to effective competition. Three of those will be better than 100 average businesses. And they'll be safer. There's less risk in owning three, easy-to-identify, wonderful businesses than in owning 50 well known and big businesses. Bad things won't happen to those three. That's one of the characteristics of a wonderful business. If my own family's fortunes for the next 30 years were dependent on the income from a group of businesses, I can assure you that I'd rather pick three businesses from those we own than own a diversified group of 50. On a personal basis, I own one stock. But it's a business I know. And it leaves me very comfortable. So do I need 28 stocks to have proper diversification? Nonsense. [Even] within Berkshire, I could pick out three of our businesses that I'd be very happy if they were the only ones we owned and I had all my money in Berkshire. I love the fact that we can buy more than that and that we keep adding to it. But three wonderful businesses is more than you need in this life to do very well. Find three wonderful businesses and you'll get very rich." (From Outstanding Investor Digest's August 8, 1996 edition)

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