FREENVESTING
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Charlie Munger holds only a few securities in his Daily Journal stock portfolio unlike many other investment professionals. One of the reasons why his and Warren Buffett’s portfolios have done extraordinarily well is that they concentrated their investments between a few very well researched opportunities that they consider to be much more promising than average and therefore outperform the market. There’s a saying “Diversification is for idiots”, and there is something to it. Charlie Munger claimed that “An idiot could diversify a portfolio”, because it’s quite a simple thing to do, all you need to do is buy an index fund. And there’s nothing wrong with it if you want a standard result, a lot of people use that approach successfully. From Daily Journal Annual Meeting (2019) Being a vice chairman of Berkshire Hathaway and the closest partner (right hand man) of Warren Buffett, Charlie Munger has a net worth of around $2 billion. He is a profoundly wise man who is absolutely worth listening to, especially when it comes to investing, stocks, the psychology of wealthy people, rationality and life experience. Share this video with a friend if you found it useful! Consider subscribing to the channel for videos about investing, business, stock market, building wealth, passive income, and other finance-related content!
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"diversification makes sense if you don't know what your doing"
Truer words have not been spoken......
Mutual funds don't beat indexed funds because they at best make the average, and with fee's you get even less of the profits.
Poop on that!
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