Munger and Buffet have said that diversification is necessary only if you don't know what you're doing. By their standards, 99% of us don't know what we're doing so we should definitely diversify. What makes Munger and Buffet "know what they're doing"? It's an obsessive amount of research into companies of interest, the patience to only buy with a significant margin of safety, and the discipline to not buy into hype or companies they don't understand. Also fair to say that there is some luck thrown into the mix!
I mean, WB bought IBM over Amazon or Google. 😂They only got him into Apple after much cajoling. It’s clear we all have limits to our ‘circle of competence,’ experts included. Diversify.
Don't forget that they can inspect a company in all its details. When they call everyone knows who they are. If you call asking for a company tour you'll probably get laughed at.
If there was a single company on earth that had more shares taken out of street name amongst hundreds of thousands of its investors, I would go all in with them...since there isn’t I’ll continue to load up on that stock that starts with a g.
I cannot imagine that being a good investment strategy. 3 indexes, yeah that makes sense. Equity instruments have 2 components of risk: systemic and company specific. I won't elaborate but here are 2 examples off the top of my head. You own 3 stocks a few years ago: Kraft Heinz, Wells Fargo, and something unrelated, some tech or healthcare stock.
Sometimes there isn’t a huge difference between an index and an actual stock. Say you had Apple, Xom and WFC. Would that be really much worse than SPY, XLE and XLF?
I bought citibank in early 2007, one of if not the biggest blue chip bank at the time. By 2008 it lost 90%. Eventually sold. Has never recovered. Similar experiences with Ford, Phizer, and Unilever.
100, randomly selected. It’s my own little experiment at replicating an equally weighted total market index. I enjoy tracking it and balancing the positions. It’s up 1.5% over 1 year while SPY is down 15%.
I mean 3 solid companies are good that are probably never gonna go away such as KO, PEP, and maybe idk MSFT, JPM, O, it's really up to you. I personally have like 12 at the moment, maybe I'll add more maybe I'll subtract in the future. Depends on what your interest are and your views on the company I guess. Can be more than that or less, your money so your choice.
I have 4 stocks and two ETFs in my brokerage and Roth IRA. Two stocks are big financials (BLK & CG) Other two are a tech company (IAC) and a smaller financial (SOFI). BLK is my largest position by far. 50% of portfolio. Ive been buying a lot of it lately since it’s down so much. I’m down big in SOFI and CG. IAC is a small position. I’m long all the stocks.
My rule is, only have as many stocks as you can keep track of and memorize the vital stats of. You should always know all the dividend info, when the distribution dates are, when the companies report earnings, PE ratios, average trading volume, moving averages, relative performance etc... It's different for everyone. If you're really busy and can't spend very much time on your portfolio, you should probably own fewer stocks. Investing is pretty much what I do full time and I'm pretty comfortable with 20 to 30 individual names and a few ETF's. When the market is in turmoil and you have to make a lot of quick decisions, you WILL make mistakes if you have too many stocks. You should also memorize how many shares you own, when you bought them, how much you paid for them and how big your positions are, what prices you're willing to buy at, what price you want to sell at so when things get crazy, you'll know exactly what to do and you won't panic or freeze up.
He said 3 ringers. That's old-timey speak for 3 sure bets. It's couched on the principle that you understand what you're buying, and you aren't going to vomit when the roller coaster does what roller coasters do.
Buy 3 stocks and learn how to sell premium against position in good and bad times. Easy to mange 3 stocks and collect premiums. I have 15 stocks in my port, but 3 are major players and I am constantly hedged and selling premium on them. Watching, trimming, and adjusting hedges on more than 3 becomes a full time job.
I own only 2M shares of LOVE.V, nothing more needed, they are the only profitable cannabis company with a future, enough to take up all the space in my portfolio hehe
I try to mantain a 3-6 weight in each stock. Less than 3 is really not worth the effort, more than 6 becomes a more concentrated risk. (I manage friends and family money so im pretty risk adverse)
I have 1 stock, 1 ETF, and a couple passive index funds. Most of my gains have come from the single stock but I’m a fan of diversification and there’s no better way to do that than the Nasdaq and S&P500.
He’s right. Out of all my stock picks…if I had to force myself to just pick 3 of those, that would have given me the best return. Those 3 are my biggest gainers.
Ask him how many he has in his portfolio. If that is 3, let's talk. Kidding aside, even the most sophisticated technical minds don't fully know exactly what they're doing. A LOT of successful investing is LUCK. At any rate, I think for the average everyday investor, 3 individual stocks is impractical to expect serious returns from unless those are well established big names or if the investor has some information asymmetry advantage. 3 ETF is still doable. But 3 stocks...naaah.
4 for me in Canada. Cibc, boardwalk REIT, Loblaws and Bell. All have good dividends and are holding well through the early recession. I have us market ETFs in my rrsp. But that’s is all I have in my TFSA and so far so good.
I have like 35 stocks in my portfolio. Some may say I am over diversified and I should just buy a etf but that’s no fun lol 😂. I enjoy watching and keeping up with the companies in my portfolio.
Well if you do the kinda research into a company him and buffet likely do that makes sense. Cause if your portfolio is to diverse I think it's gonna be hard to beat the market.
Fck those guys. They have it easy way. Whatever they buy been publicated in all nees and media . After when ppl see what they bought they buy too and stocks go up. This some bs how they make them richer
3? Nonsense! Buy 1 stock and pray 🙏
sending you thoughts and prayers
Stocks? High leveraged options only.
R/wallstreetbets
DRS first though
Munger and Buffet have said that diversification is necessary only if you don't know what you're doing. By their standards, 99% of us don't know what we're doing so we should definitely diversify. What makes Munger and Buffet "know what they're doing"? It's an obsessive amount of research into companies of interest, the patience to only buy with a significant margin of safety, and the discipline to not buy into hype or companies they don't understand. Also fair to say that there is some luck thrown into the mix!
I mean, WB bought IBM over Amazon or Google. 😂They only got him into Apple after much cajoling. It’s clear we all have limits to our ‘circle of competence,’ experts included. Diversify.
But they don’t only own 3 🤷🏻♂️
Don't forget that they can inspect a company in all its details. When they call everyone knows who they are. If you call asking for a company tour you'll probably get laughed at.
diversification is for the wealthy, concentration is to build wealth.
Warren Buffet once said “It’s okay to put all your eggs in one basket. You just have to watch that basket very closely.”
2 Stocks down 40% :-(
At least you're not all in Z or SQ or something that dropped 80%+.
Dude..look up blue chip stocks and park some assets there. Also, after Xmas park some cash in 3mo bonds.
Damn are you gonna buy more of those 2? What are they?
He meant 3 real stocks, not crypto and meme stocks
4 stocks down the very least 40% :/
16 penny stocks that munger won't even know how to handle.
Hahaha what ur biggest position
One
Does it moon soon?
Hear hear! :)
This method is effective
I own over 2,500 in SCHB.
Sed Cot Hili Beppers?
One ring to rule them all
I for one, welcome my purple ring overlord.
3 actually
Which
1 Stock.
1 stock per sector, continuously invest in each and try to keep them around 7.7% of portfolio
I have 5 ANZ %40, Rio Tinto %15, British petroleum %15, British american tobacco %15, Costamare 🚢%15
Interesting.
I like the Rio Tinto and BP picks!
How have you performed year to date?
Yep..just stick to index funds …my favorite. VTSAX
The fund "runners" thank you for your fees
I only hold 1.
Let me guess. It starts with letter G?
If there was a single company on earth that had more shares taken out of street name amongst hundreds of thousands of its investors, I would go all in with them...since there isn’t I’ll continue to load up on that stock that starts with a g.
What is it?
I cannot imagine that being a good investment strategy. 3 indexes, yeah that makes sense. Equity instruments have 2 components of risk: systemic and company specific. I won't elaborate but here are 2 examples off the top of my head. You own 3 stocks a few years ago: Kraft Heinz, Wells Fargo, and something unrelated, some tech or healthcare stock.
Maybe the point is to follow less companies and understand them better
Warren buffet went all in on cococola and diversified later. Why bet on a bunch of small wins when you’re more confident in a big one?
Sometimes there isn’t a huge difference between an index and an actual stock. Say you had Apple, Xom and WFC. Would that be really much worse than SPY, XLE and XLF?
I bought citibank in early 2007, one of if not the biggest blue chip bank at the time. By 2008 it lost 90%. Eventually sold. Has never recovered. Similar experiences with Ford, Phizer, and Unilever.
Theoretically if you know the best stock then a 1 stock portfolio is all you need.
4 stocks 3 ETFs
….and 1 beer.
Why not just 1 ETF
Only one. GME
How’s that working out for you?
Then why even bother coming to this sub? You clearly have no genuine interest in the market or how it functions
One and cash.
What is it? I have %40 in ANZ
45 lol
100, randomly selected. It’s my own little experiment at replicating an equally weighted total market index. I enjoy tracking it and balancing the positions. It’s up 1.5% over 1 year while SPY is down 15%.
1
25 in red every week!
If a hunter chases 3 rabbits, he'll get none
If you have insider information then sure.
He meant
That explains Berkshire Hathaway only owning GME, AMC and Smile Diect Club
5, but 90% is in SoFi
PGY + SoFi 🙌
Sofi seems like an interesting play, what is your price target?
Ga mestop and ROOT
Only 1, GME DRSed,
7
I mean 3 solid companies are good that are probably never gonna go away such as KO, PEP, and maybe idk MSFT, JPM, O, it's really up to you. I personally have like 12 at the moment, maybe I'll add more maybe I'll subtract in the future. Depends on what your interest are and your views on the company I guess. Can be more than that or less, your money so your choice.
5
I have 4 stocks and two ETFs in my brokerage and Roth IRA. Two stocks are big financials (BLK & CG) Other two are a tech company (IAC) and a smaller financial (SOFI). BLK is my largest position by far. 50% of portfolio. Ive been buying a lot of it lately since it’s down so much. I’m down big in SOFI and CG. IAC is a small position. I’m long all the stocks.
1
20 ETFs
I have 24 ETFs and 29 stocks, yeah I am probably doing it all wrong.
7 stocks, portfolio up 137%
What's ur biggest position
Charlie don't know jack, I just buy 3 shares of every stock! Boom I always win, and lose....probably just lose
I’m more of a bogle kind of guy
3 stock, and I'm up 190% since I've started 5 years ago.
My rule is, only have as many stocks as you can keep track of and memorize the vital stats of. You should always know all the dividend info, when the distribution dates are, when the companies report earnings, PE ratios, average trading volume, moving averages, relative performance etc... It's different for everyone. If you're really busy and can't spend very much time on your portfolio, you should probably own fewer stocks. Investing is pretty much what I do full time and I'm pretty comfortable with 20 to 30 individual names and a few ETF's. When the market is in turmoil and you have to make a lot of quick decisions, you WILL make mistakes if you have too many stocks. You should also memorize how many shares you own, when you bought them, how much you paid for them and how big your positions are, what prices you're willing to buy at, what price you want to sell at so when things get crazy, you'll know exactly what to do and you won't panic or freeze up.
What 3 stocks did he recommend having?
He said 3 ringers. That's old-timey speak for 3 sure bets. It's couched on the principle that you understand what you're buying, and you aren't going to vomit when the roller coaster does what roller coasters do.
13 up 30%
Buy 3 stocks and learn how to sell premium against position in good and bad times. Easy to mange 3 stocks and collect premiums. I have 15 stocks in my port, but 3 are major players and I am constantly hedged and selling premium on them. Watching, trimming, and adjusting hedges on more than 3 becomes a full time job.
3 stocks! SPXU, WEAT, and a metric crack ton of GME 🚀
I only have one stock ;)
99% on TSLA 1% on SQ
Bro just yolo into 1 why diversify …
One.
Yup. SQQQ, YANG, and GME
1 stock. Down 50% in 1.5 year, still average discounting..
VOO, QQQ and BRK-B
I own spy and 8 individual stocks, the max individual stocks I’d own is 10. I want to be able to keep up with each of their news.
That is 510
I own only 2M shares of LOVE.V, nothing more needed, they are the only profitable cannabis company with a future, enough to take up all the space in my portfolio hehe
5 and YTD I am up over 40% with my largest position up 80%.
What are they??
He would hate my portfolio. I sold all my Google shares at ATH for GameStop and crypto
Dumbass
9 all commodities, predominantly mining stocks at the moment. I tend to be a bit of a contrarian
I have %15 in Rio Tinto
If there were a stock for fish, I would buy it, because then I’d own a piece of Charlie Munger.
Somewhere north of 270, I don't really know anymore.
1 stock above the rest
Sp500
All you need are 0DTE options
Just look at this dude
1... or 4000, depends how you look at it lol
GME, NVDA, ROOM FOR 1 MORE
He is an idiot
I’m not familiar with this quote, can someone post the source?
https://youtu.be/PaNdbrgLleU
3
Charlie is 1000 years old.
I did best in the 2010s when all I owned was a boatload of NFLX.
It’s knowing how to pick those three. Otherwise it’s indexes.
House account is 50% mutual fund and 50% etfs. Vwinx, Schd, Vgt, Jepi, and vym
2000
3
I try to mantain a 3-6 weight in each stock. Less than 3 is really not worth the effort, more than 6 becomes a more concentrated risk. (I manage friends and family money so im pretty risk adverse)
Pgy, SHOP, Sofi, SQ
I have around 40
Is one of the 3 baba? Lol
What are these three stocks that everyone must own then
Gotta pump those numbers up. Those are rookie numbers in this racket.
2 lol
I don't disagree with this. For a few years I only held AMD and WFC and did very well.
1 FSLR
6, and a bunch o ETFs that own all the stocks in the world.
Three
Well technically I could do 3, but lazy to switch out IWDA+EIMI to VWRA so I have 4.
3 as well but going to max it to 5
~10 stocks in my portfolio, down 30%. COST and BRK.B have kept it from going lower 🥲🙏
I own 36 stocks and 15 ETFs, i'll list them out if someone asks.
2 stocks and I'm down 80% 👍🏻
i mean realistically you could probably follow the overall market with 3 stocks in different sectors
7 and 3 ETFs
I have 1 stock, 1 ETF, and a couple passive index funds. Most of my gains have come from the single stock but I’m a fan of diversification and there’s no better way to do that than the Nasdaq and S&P500.
He’s right. Out of all my stock picks…if I had to force myself to just pick 3 of those, that would have given me the best return. Those 3 are my biggest gainers.
5 stocks down 70%
Bbby, gme amc 🐒
Zero, I sold all my stocks a year ago and I am pretty happy about this
I have 4 that represent very different sectors
My portfolio’s like a grocery store with how many stocks I have
8 stocks
Charlie Munger bought BABA. What does he know?
One
44 stocks and 6 etfs. All dividend payers. Guess I just like the number 50.
Not only three.
Is 54 to many.
How would he know 🙄
You only need ten stocks to be down 33% according to my own very personal data
I'm stupid
Ask him how many he has in his portfolio. If that is 3, let's talk. Kidding aside, even the most sophisticated technical minds don't fully know exactly what they're doing. A LOT of successful investing is LUCK. At any rate, I think for the average everyday investor, 3 individual stocks is impractical to expect serious returns from unless those are well established big names or if the investor has some information asymmetry advantage. 3 ETF is still doable. But 3 stocks...naaah.
Per day?
3
priorities! that's bad to the bone!
I just want what Austin Scott has
Maybe if you're a billionaire.
You only need one stock in your portfolio if it makes 100% YoY. “YoU oNlY nEeD tHrEe” guy over here is just saying nonsense risky strategy.
I got two :)
5 but two are 75% of everything
OIH is carrying my NVDA, GOOG, and WFC losses.
Then why does Berkshire Hathaway have 53 different positions???
Technically you don’t need any stocks in a portfolio
It’s case of “Do as I say not as I do”. Just ignore the dinosaur.
I have 8 but 60% is in 3 stocks: 25% BAM 25% OVV 10% FANG
42. All dividend paying positions. Replacing over 60% of annual salary.
500
10 in my individual stock portfolio
More than 15
I love the bullshit they try and push when they do the exact opposite. Did they get rich via Berkshire by only owning 3 stocks. Fuck no!
Actually...3
I only hold 3 after selling 2 low performing stocks.
this whole idea is lunatic; please diversify…
4 for me in Canada. Cibc, boardwalk REIT, Loblaws and Bell. All have good dividends and are holding well through the early recession. I have us market ETFs in my rrsp. But that’s is all I have in my TFSA and so far so good.
3
I own stock in every public company in the US, fight me.
1-2 for me, but typically just 1.
I invest in people.
“You only need to buy 1 winning lottery ticket”
How many stocks are in his portfolio?
1 stonk to rule them all. 1 is all I need.
Bought 🚨🚨🚨 Smrtg Kmpur Sasa Hekts Would advise to have a look to the graphs from trading view
2 ETFS and a reit
So much for diversification
I have like 35 stocks in my portfolio. Some may say I am over diversified and I should just buy a etf but that’s no fun lol 😂. I enjoy watching and keeping up with the companies in my portfolio.
Bull💩!! Diversification is vital. Tho I do think one can def have too many stocks, if you can’t do your due diligence on all of them.
Well if you do the kinda research into a company him and buffet likely do that makes sense. Cause if your portfolio is to diverse I think it's gonna be hard to beat the market.
Four. One about to take a buyout and cost me at minimum 50K. The other three down ~50%.
Fck those guys. They have it easy way. Whatever they buy been publicated in all nees and media . After when ppl see what they bought they buy too and stocks go up. This some bs how they make them richer
4 stocks. Down 1% this year
12 and a crap load of ETF’s less than 1. 3 Mutual and no better off than when I started.
2 stocks. Only down 9%. Casually average down on really red days and patience.
Sounds like he wants retail to sell.