- You need to buy high quality businesses, spend your time understanding what drives those businesses and let the power of company do its work, clearly what we are saying is this strikes at the heart of what the world has believed for years that in order to manage risk, you should hold a diversified basket of stocks. That makes no sense, right?
- What happens - you have a concentrated portfolio, 8-12 stocks one of them blows up because that is something that you cannot figure out? if you are using that portfolio as a way of planning for the future, you are in deep trouble, aren't you?