[Nords]

Quote:

Originally Posted by cardude I was in the "concentration" camp for years, but now I realize when you start to draw down on your investments they better be diversified:

Well, if I read five newspapers and a dozen financial reports a day I'd probably be a better investor too. I'd be a miserable human being but I'd be much more informed.

I think Buffett's advice boils down to "Kids, I'm a hardwired & trained professional-- don't try this at home." He also greatly overlooks the potential of his connections forged through of nearly five decades of publicity & shareholder's meetings, especially the last few years with CNBC. I doubt Walter Schloss' or Dick Ruane's phones ring anywhere near as much.

Having said that, I think diversification only does two things: reduce volatility and improve sleep. Its purpose is the same whether you're retired or working, and it's all a function of where your steady cash flow is coming from-- a paycheck, a pension, a cash stash, or some other dividend stream. If you don't have any of those providing the spending money then, yeah, diversification is probably a good idea.

If I was on my own and keeping my expenses reasonably close to my govt pension then I'd be greatly tempted to hold Berkshire as the majority of my portfolio-- at least 50%.