Bill Ackman: "I think most investors over-diversify because they are lazy. They don't do enough research on any of their companies. If they have 200 positions, do you think they know what's going on in any of those companies at the moment?"
So, how lazy are you? :))
Buffet himself recommends the S&P500. It's not about laziness, it's just that some people don't try to beat the market.
200 positions would be too much for me :) I'd like to hold something around 20-25 positions with the understanding that I'll have done enough research and quality analysis on each stock.
I don't think it's about laziness. On the contrary, with a certain age, you don't want to have everything in a few stocks anymore, even if they are stable, rather spread the risk a bit more. I'm on 20 stock titles.
From this point of view I am probably the laziest investor by far when I hold ETFs, BRK.B, LVMH and Tencent, i.e. about 2000 companies;)
I agree that 200 positions is really nonsense. I still hover around 20 and even that I think is a lot. It is an actively managed portfolio after all.
