Many financial advisors strongly recommend investors diversify their portfolios. They subscribe to Sir John Templeton's principle, "Diversification is a safety factor that is essential because we should be humble enough to admit we can be wrong."

But Warren Buffett seemingly isn't a big fan of diversification. Buffett has nearly 68% of Berkshire Hathaway's $361 billion portfolio invested in only four stocks. Why?

Berkshire owns more than 905 million shares of Apple (NASDAQ: AAPL) worth over $152 billion. This one stock makes up a whopping 42% of Berkshire's portfolio. The percentage was even higher last year before Buffett (or one of his two investment managers) trimmed Berkshire's position in Apple a little in the fourth quarter of 2023.

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Source Fool.com