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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (35497)	11/28/2000 2:14:42 AM
From: kumar	Respond to of 54805

<<The models consist of a concentrated portfolio of stocks all sharing similar characteristics. That is dangerous.>> I believe the authors of the manuals do provide an explanation of "why concentration is good (and long term profitable)" within the tight bounds of the GGame. I didnt see no danger in the context of GGaming. Do u have specifics to help me (and maybe others) understand better ? cheers, kumar

To: Paul Senior who wrote (35497)	11/28/2000 2:38:47 AM
From: akoni-1	Read Replies (1) \| Respond to of 54805

RE: "Concentrated Portfolio of Stocks" Paul, I am a bit confused about your concern regarding G&K and their "concentrated portfolio of stocks". In an address given by Charlie Munger (Vice Chair of Berkshire Hathaway & Warren Buffett's sidekick), he promoted "more imitation of the investment practices of Berkshire Hathaway in maintaining marketable equity portfolios with virtually zero turnover and with only a very few stocks chosen". He subsequently stated that "a person or institution with almost all wealth invested, long-term, in just THREE fine domestic corporations is securely rich ... (because) of lower costs, required emphasis on long-term effects, and concentration in the most preferred choices". Furthermore, he added that "I think it can be a rational choice, in some situations, for a family or a foundation to remain 90% concentrated in ONE equity". I'm no Charlie Munger, and I'm no LindyBill, but given your support of Buffett and Berkshire Hathaway, what am I missing? Why is a focused approach to investing OK for Buffett but not OK for G&K investors?