EPD - If I Could Only Own 3 Stocks For The Next Decade
2024-06-13 07:04:00 ET
Summary
- Charlie Munger was a big believer in concentrated portfolios.
- I share what I would hold in an ultra-concentrated buy-and-hold portfolio for the next decade.
- Two of these picks will likely surprise you.
Berkshire Hathaway's ( BRK.A )( BRK.B ) Charlie Munger believed strongly in the power of concentrated portfolios, holding only a few stocks outside of his BRK.A stock, such as Alibaba ( BABA ) and Costco ( COST ). Personally, I like to diversify beyond just a few holdings and generally hold about two dozen stocks in my portfolio at any given time, given that my strategy relies heavily on opportunistic capital recycling rather than purely buying and holding stocks for decades to come. However, there is a lot to be said for Mr. Munger's approach, as it simply requires making a few really intelligent decisions and then having the discipline to let time and the power of compounding do its work....
If I Could Only Own 3 Stocks For The Next Decade