we adopted a strategy that required our being smart—and not too smart at that—only a very few times. Indeed, we'll now settle for one good idea a year. (Charlie says it's my turn.) The strategy we've adopted precludes our following standard diversification dogma. Many pundits would therefore say the strategy must be riskier than that employed by more conventional investors. We disagree. We believe that a policy of portfolio concentration may well decrease risk if it raises, as it should, both the intensity with which an investor thinks about a business and the comfort-level he must feel with
...more
