Why Warren Buffett’s Right-Hand Man Said Diversification Will Not Work For Everyone

Why Warren Buffett's Right-Hand Man Said Diversification Will Not Work For Everyone

Key Takeaways In contrast to most financial advisors, Munger called wide diversification “protection against ignorance,” useful only when you don’t have conviction.  Holding too many positions, he argued, can raise costs, blunt big winners, and still leave you exposed to market shocks. Munger advocated a balanced approach—owning a few great companies plus low-cost index funds—that […]

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