| | | "Why", he asks, "put money into your 20th best choice rather than in your top 5 or 10 ?" (See Chap.8, "How Buffett Does It" by James Pardoe).
This is correct, but basically not helpful. Garbage quote by him,imo.
On Sept 15, 2020, ORI, for example was my best idea and best choice of all the stocks I was aware of. I bought a full position (as I posted). So yes, I bought my best idea.
Three months later, my thesis for buying ORI was intact, but I was on to other stocks. ORI was not then my best idea. What would Buffett have me do -- sell and buy my new best idea? That's ridiculous. ORI had not achieved full/fair value.
How many times over the past years have people come on the thread to report that their best idea was NOT their best performer. And in fact their best performer was a stock they never expected to do so well. Therein lies one reason for diversification: The larger the number of stocks one chooses that meets one's criteria, the better the chances seem to be that one or more of them will turn out to be a surprise very larger winner..
You have your way of investing which works for you. A Buffett way. This is not the Buffett thread though. |
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