is extremely important for many investors, however Warren Buffett tends to
disagree with the idea.
to Buffett, diversification is for people who don’t know much about investing.
An experienced investor should be able to choose stocks on a long-term basis
and should have faith on these investments.
choose to diversify their portfolios because of the fear that one stock might crash
their entire portfolio; however it becomes much harder to keep track of the
current events impacting each company. So, by diversifying, you might reduce
the volatility of your portfolio, but at the same time you reduce your focus on
wait for opportunities to buy good quality stocks at a good price. The key
here… is waiting.
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