Why Diversifying Your Portfolio Feels So Awful

Warren Buffet said, "Diversification makes very little sense for anyone that knows what they’re doing." He also said, "Diversification is a protection against ignorance..." Most of us need that protection against ignorance, yet diversification often makes us feel bad when some of our holdings don't do as well as others. We make the case why we should diversify anyway.Topics covered:Warren Buffet says it's crazy to own more than 30 stocks, but Berkshire Hathaway owns 48 stocksWhat does it mean to analyze a businessHow have U.S. stocks performed relative to non-U.S. stocks long-termWhat has driven the outperformance of U.S. stocks and what has to happen for it to continueWhat are examples of diversification plays just in case the U.S. faltersFor more information on this episode click here.Show NotesWarren Buffett and Diversification—GrahamValue.comThe Complete Berkshire Hathaway Portfolio by John Divine U.S. NewsThe Business Cycle Is Different Than The Economic Cycle - Crestmont ResearchEU Natural Gas—Trading EconomicsRelated Episodes254: Should You Be 100% Invested In Stocks?275: Are You Over Diversified?364: Should You Hedge Your International Stock Exposure Against Currency Fluctuations?SponsorMasterworks – invest in contemporary artSee important Regulation A disclosures at masterworks.io/cd   Since inception, Masterworks has sold six paintings from the collection. IRR is net of all fees and expenses and is presented on a deal-weighted basis, which assumes the same investment amount was made in each applicable offering. In certain cases, Masterworks may concede its fees and/or profit sharing in connection with the sale of a painting for the benefit of the shareholders. Net IRR was calculated assuming all fees and profit sharing to which Masterworks was entitled were charged to the issuer. IRR on sold artwork is not indicative of Masterworks’ overall performance or future results.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.