Warren Buffett knows how to invest. As chairman and CEO of conglomerate Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), he has generated billions in investment gains for himself and Berkshire shareholders.

Interestingly, a quick review of the Berkshire Hathaway stock portfolio shows a striking lack of diversification. Some 75% of the conglomerate's stock holdings are concentrated in five domestic companies that operate in four economic sectors: Apple, Bank of America, Coca-Cola, Chevron, and American Express.

Given Buffett's track record of savvy investment decisions, you have to wonder why he doesn't spread out his risk more. If Buffett can do well without diversification, can you too?

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Source Fool.com