Patient Investing
If you buy something because its value is undervalued, you must consider selling it when its price rises to your expected level. That is difficult. But if you can buy a few great companies, then you can sit back and relax. That is a great thing. We tend to put large amounts of money into places where we don’t need to make further decisions.
Diversification
The idea that investment should be as diversified as possible is a delusional concept. We do not believe that highly diversified investments produce good results. We believe that the diversification level of almost all good investments is relatively low. If you remove our 15 best decisions, our performance will be very mediocre. What you need is not a large amount of action, but extreme patience. You must stick to the principles, and when the opportunity comes, you must seize it forcefully. Over the years, Berkshire has made money by betting on things it is confident about.