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Buffett's Berkshire is model of diversification
closer
05-18-2008, 12:02 PM | Post #2519194
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Warren Buffett's oft-quoted line to the effect that "if you're clueless, pursue diversification; if you know what you're doing, pursue concentration" stands in notable contrast with the large collection of diverse companies (everything from carpets and candy to jewelry and insurance) he has assembled under the umbrella of Berkshire Hathaway. Likewise, his stock selections run from financials (American Express and Wells Fargo) to food and beverage (Coca-Cola and Kraft) to railroads (Burlington), industrials (Ingersoll-Rand), and utilities. The common denominator is that he buys quality assets he understands at a discount, then patiently waits for their value to grow. Typically, he holds them indefinitely, but sometimes he takes profits (PetroChina) or quietly liquidates his position (Ameriprise).
Topics
American Express
Berkshire Hathaway
Coca-Cola
Warren Buffett
Wells Fargo
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