Why Diversifying Your Portfolio Feels So Awful

Why Diversifying Your Portfolio Feels So Awful

Warren Buffet said, "Diversification makes very little sense for anyone that knows what they’re doing." He also said, "Diversification is a protection against ignorance..." Most of us need that protection against ignorance, yet diversification often makes us feel bad when some of our holdings don't do as well as others. We make the case why we should diversify anyway.

Topics covered:

  • Warren Buffet says it's crazy to own more than 30 stocks, but Berkshire Hathaway owns 48 stocks
  • What does it mean to analyze a business
  • How have U.S. stocks performed relative to non-U.S. stocks long-term
  • What has driven the outperformance of U.S. stocks and what has to happen for it to continue
  • What are examples of diversification plays just in case the U.S. falters


For more information on this episode click here.

Show Notes

Warren Buffett and Diversification—GrahamValue.com

The Complete Berkshire Hathaway Portfolio by John Divine U.S. News

The Business Cycle Is Different Than The Economic Cycle - Crestmont Research

EU Natural Gas—Trading Economics

Related Episodes

254: Should You Be 100% Invested In Stocks?

275: Are You Over Diversified?

364: Should You Hedge Your International Stock Exposure Against Currency Fluctuations?

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