Jeffrey Bash: I disagree with that advice, and I don't believe Buffett himself follows it. His GEICO holds a bunch of securities, and every once in a while we get glimpses of his personal portfolio which include a variety of stocks different from his Berkshire holdings.
In EVERY SI thread where I see examples of whining and crying about stock losses I believe I observe an overly concentrated portfolio. Also, if we all waited for the perfect 20 pitches, I believe (just from the ownership of co's we see here) that very few of us would even have a minority, let alone a majority, of the same stocks. That means to me, that we would have mostly different stocks and that we all can't be right. Therefore, many of us would lose using this 20 ticket method (unless the market took us all too new highs, in which case who cares if it's 10,20,30 or more). Buffett's advice regarding this concentrating of ownership, IMO, is very dangerous to most investors. But of course, Buffett might say---maybe.. so what else is new. The majority can't beat an index fund; go with that. JMO. Paul Senior (I'm one to try to buy value whenever I find it... and I always find it (or so I always think -g-) more than 1 -2 times every year.) |
