Warren Buffett Has 66% of Berkshire Hathaway's Portfolio in Just 3 Stocks. Should You?
In the world of investing, there's a constant tug-of-war between growth and value. Between diversification and concentration. Between large-cap and small-cap stocks. It's a game of trade-offs, where the individual investor must decide which strategy and qualities matter most to them.
If investing were a spectrum of risk, then diversification, large-cap, and value would be considered safer while concentration, small-cap, and growth could be considered riskier.
So how come Warren Buffett, the CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), who is known for his prudent investing style, falls into both the large-cap and value "safe" categories, but he has set up Berkshire with a surprisingly concentrated portfolio? Here's why the strategy makes sense and how Buffett's portfolio allocation could help you become a better investor.
Source Fool.com
