Nothing new here. Buffett's answer is entirely consistant with what he's been saying for (at least) the past 15 years: if you know what you're doing, a focused portfolio of stocks is great, but if you're a "know-nothing investor", you should stick to indexing. See his Chairman's Letter - 1993.
 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
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You may or may not be correct, but there is nothing in your Buffett quotation that leads to that conclusion.
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