Whether you started investing today or decades ago, you've probably heard a lot about the importance of diversification. That's the idea of spreading your investments across a variety of stocks and industries. You can even go beyond that by investing in various types of assets -- such as stocks, bonds, and cryptocurrency, for example.

But guess what? World famous investor Warren Buffett isn't one to diversify when investing in stocks. In fact, the billionaire has even criticized the idea. As head of Berkshire Hathaway, Buffett's portfolio is focused on a narrow selection of industries -- and the biggest positions are in a handful of stocks. We all would love to score even a bit of Buffett's success. Does that mean we should drop diversification from our strategy?

First, let's consider the composition of Buffett's portfolio and exactly what he's said about diversification. As my colleague Sean Williams wrote recently, more than 90% of Buffett's portfolio is concentrated in only four sectors: technology, financial, consumer staples, and energy. And one stock alone -- Apple -- accounts for more than 45% of the fund's total value.

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Source Fool.com