Warren Buffett: How Many Stocks Should You Own In Your Portfolio?

Warren Buffett on how many stocks you should own in your portfolio!
Found a gem of a clip online that I'd love to share with you guys!
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About Brandon Beavis:
Brandon Beavis was one of the youngest advisors to become fully licensed here in Canada.
In 2013, Brandon officially began his industry studies. Over the years he has completed his CSC (Canadian Securities Course), CPH (Conduct & Practices Handbook), WME (Wealth Management Essentials), 90-day Investment Advisor Training Program, attended the Manulife Professional Development Workshop in Oakville, ON, and attended countless industry seminars, conferences & events to help further his learning.
At age 20, he became a fully licensed Investment Advisor, working for one of Canada’s largest Investment Brokers, Manulife Securities. For 4 years, he worked alongside a highly experienced team at Beavis Wealth Management, specializing in High-Net-Worth Investing. He’s had the opportunity to work under his Father, an advisor of over 25 years, and has dealt hands-on with client portfolios, involving; analyzing, building, and managing multi-million-dollar client accounts.
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About Marc Beavis:
Marc is a retired Portfolio Manager, having spent over 25 years in the investment industry, managing multi-million-dollar portfolios and working with clients of all ages. He retired in 2021 and is a regular contributor to this channel.
Following his initial licensing back in 1996, he completed a number of industry courses, including the Derivatives Fundamentals and Options Licensing Course, Portfolio Management Techniques, Wealth Management Essentials, Investment Management Techniques, Fixed Income Investing, Hedge Fund Essentials, Portfolio Theory, and of course, the Canadian Securities Course.
When working in the industry, he held the Chartered Investment Manager (CIM) Designation as offered by the Canadian Securities Institute. In addition, Marc was a Certified Financial Planner (CFP) practitioner, the industry gold standard in financial planning.
Disclaimer: The views and opinions shared on this channel are for informational and educational purposes only. Although previously licensed, the contributors are no longer industry participants and are not licensed to provide financial advice. They strive to provide you with educational information in an entertaining manner. Always do your own research and due diligence before investing. Generally speaking, you should consult a licensed investment professional before investing.
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[@beaviswealth]

Question: How many stocks should you hold in your portfolio? Leave a comment down below! 📈📚 As always, if you're a beginner to the Stock Market and you're looking for a step-by-step blueprint on how to get started... Find out more about our Investing Academy here - bit.ly/InvestingAcademy.

[@nickfararis411]

I have bout 10 different stocks in in my portfolio energy and REIT about 60% and 40% marijuana stocks

[@brantleystraub243]

I agree with Warren; if you know the businesses well and believe with a reasonable certainty that they will yield great results over the next several decades, then why not own only a few companies. With that being said, the average investor does not have the bullet-proof, thick skin like we see with Warren Buffett, Charlie Munger, or Luke Cage. Most people allow their emotions to push them to make irrational moves and often that is due to a lack of principles. That is why I would argue that 99% of investors need strong diversification, while a true value investor, which is the minority investor, only needs a small handful.

[@tsjoshi]

"Diversification is protection against ignorance." Best...

[@yudiagungwibowo3156]

i have only 1 stock 😭, because i don't have much money

[@ndon85]

@@brantleystraub243 agreed 100%, and actually even Buffet mentioned something similar in an interview

[@gersonadr2]

“Diversification is ignorance insurance”. Guess what, I am ignorant when it comes to analysing companies (and in many other ways). One aspect of wisdom is knowing our own limitations.

[@gersonadr2]

Yep, majority of the population are dentists, lawyers, and not full-time financial analysts. And even amongst those, 96% underperform the index over 10yr period. So, yeah, I will keep diversifying

[@WeMotivateTV]

Nothing to be ashamed of. Even business research requires a team and rarely does every member of a team draw the same conclusions. That in itself is diversification.

[@jackgarcia4950]

I’ve made a good amount day trading index funds. It’s not a bad way to make money. It’s also easier to make money when the market dips

[@charleswesesky747]

He says this in the video, though. Did you even watch it?

[@caseyporter499]

The secret to overcoming ignorance is learning

[@kenhall6565]

anybody that can drink that much coke and still be living, can't be human....

[@andysorensen1737]

Ken Hall Get him and Keith Richards in a room to talk about perceptive immortality.

[@berkanttahirov1645]

Yes i though the same.. This guy drinks coke more than water eats often at McDonald's.. 😂

[@mushrifsaidin]

Because he drinks ONE per day compared to people who drinks like 3-4 cans per day

[@thegoat5587]

He drinks coke in press conferences to promote them only , i guess

[@bikrambagani174]

@@mushrifsaidin No. He himself admitted he drinks 6 - 7 cans of coke

[@fathead3381]

Fun fact, Warren Buffet’s social security number is 14.

[@hunterlogan7378]

fathead3381 i thought it was 1. Maybe 2

[@InvestorCenter]

Lmao

[@lmnop01]

@@hunterlogan7378 No Mr Burns is 1

[@trickpatdolla5329]

He roomed with Jesus back at the University of Nebraska!

[@suyogchandak2340]

Let's identify a fact. Very very few people can accurately analyse a business correctly. An average person is better off diversifying.

[@ariavachier-lagravech.6910]

Of course, that is why he pushed for layman to buy index funds.

[@ziriguidum88]

Dementia?

[@robimgabriel8063]

Read the intelligent investor, you'll learn how to value investing and then once you have shares of companies you find of great value, pick some "risky" ones that can boom

[@LordHollow]

With the right knowledge, we don't have to be average.

[@InvestorCenter]

Buffett says all the time the average person should own an index fund

[@abesapien9930]

"Diversification is a defense against ignorance"

[@hailo1884]

three businesses? okay, Enron, Lehman and GE :D Nailed it

[@beaviswealth]

👏🏻👏🏻😂

[@owenwalker1774]

😂

[@Fidellio369]

IF you shorted them, you'd be good :)

[@hongyaohome]

😂🤣

[@owenwalker1774]

Yo dawg have you ever heard of this killer company called Myspace. I'm gonna get rich!!!🤑👍

[@chooselife3000]

I have watched this 3-4 times now, never grows old.

[@chooselife3000]

"Words of Ultimate Wisdom" Sir

[@ellischang299]

Thanks for the vid Brandon, keep them coming!

[@diedertspijkerboer]

My investments are: liquid assets: 40%, furniture 30%, model railways 10%, perishables 5%, unspecified 15%. Unfortunately all of them have an expected ROI lower than inflation.

[@32kirby32]

Diedert Spijkerboer those sound more like hedges and store of value plus comfort/interest enjoyed. Just take 5% of that a month and invest dollar cost average in almost anything and compound interest should do the rest

[@diedertspijkerboer]

@@32kirby32 It was not a serious comment.

[@32kirby32]

Diedert Spijkerboer just spreading my two cents to the universe to get it bacc at me. Either way hope it gelps

[@iminasamscar9432]

I assume liquid assets are tap water?

[@hichamr3691]

Dude that's some solid investments 👌

[@firstlast7719]

I own exactly 26 stock and bond positions. 20 stocks the rest corporate bonds. It's not hitting the ball out of the park but it's a comfortable and profitable enough approach for my needs

[@deburgh65]

@@AI-ml1sl Well said.

[@jhall19k45]

I love how he just casually tossed a figure of $600 million out there like it wasn't anything lol

[@MrMchery20]

Yooo factssssss

[@alqadeeb]

Different standard

[@Senninha1960]

When u have such pull with bankers and politicians to avoid interest and taxes, it is worthless... Not putting him down but that's how he did it

[@vargaskenneth8837]

I just got laid off during this pandemic...doesn't hit much hard though just because I still have some savings that I am looking forward to investing. Your crucial information will be appreciated!

[@jakethompson8737]

You can read books written by some great investors and learn the rope.

[@kevinjohnstone4023]

Get yourself a well accredited portfolio manager and invest with him/her.

[@thepotter867]

You can invest with an accredited manager but please do not give your money to anyone . Make sure you are in control of your money.

[@paulinescholes6797]

I invested with PATRICE ANN ISABELLA and the outcome has been mind-blowing. She provided the necessary instructions while I was in control of my funds. She is accredited and available on the web.

[@manojvishwanathan234]

Invest in yourself to learn new skills that will be in demand in the future and then park some money for emergency and then invest in stocks after taking professional advice

[@momoneylessproblems9183]

10 to 15. After you hit 20 the amount of research done on each individual company doesnt justify the meager gains achieved from such a degree of diversification. If you intend to hold more than 20+ stocks in your portfolio you might as well just passively invest in the S&P500 or some other comparable benchmark. Less work and youre likely guaranteed a 10% return YoY on average.

[@Tyler-tf1wr]

"youre guaranteed a 10% return YY on average." If by guarantee you mean on average with giant volatility that saw last year lose 6.2% then sure!

[@LesMetalleux321]

@@Tyler-tf1wr investing in the s&p500 is a very very long term strategy. Yoy can't do it and think in order of a single year, and when it comes to the long term, you really are guaranteed to have a 7-10% return per year on average.

[@Tyler-tf1wr]

@@LesMetalleux321 Nope. No such thing as guaranteed when it comes to investing. S&P's 7% return is an average over the course of 4 decades or so, but there is absolutely nothing on this planet that guarantees that will be the same return 40 years from now or 40 years from then. It is just an index of actual companies and these companies need to have their perceived values increased in order to hit these goals. If the companies had their economies shrink and their valuations perceived as smaller then the market would react over time and you would see lower rates of return and if the shrinkers move the market more than the growers than the S&P will lose value. Bonds are far safer and they are not a guaranteed return. T-Bills are far safer, they have always been paid back since they started and yet they are still not a guarantee either. BTW investing in any stock should be a long term strategy, day traders tend to get crushed on returns compared to a long term value strategy.

[@LesMetalleux321]

@@Tyler-tf1wr everything you said is true, but what i said is to be taken with a grain of salt. Ofc nothing is guaranteed on the stock market and in life in general, but the s&p500 is one of the safest albeit not the most profitable investments there is. I understand recessions do exist. However, can you elaborate on the t-bills thing please? I can't seem to find relevant info on them.

[@abhidahiya4007]

@@Tyler-tf1wr What is even guaranteed on this planet? What if one's country is invaded by the other or some terrorist group? What if someone is not alive to see the next morning? Nothing is guaranteed on this planet. Even the money in banks with paltry returns but claimed to be safe is not really completely safe. It's all about how much risk is good and reasonable risk and a person's appetite for it. India's first Stock Market Index (Sensex) was at 100 in 1986. Now in 2019, it's at 39,000. It has made money of people 390 times of what it was in 1986, with ~18% annualized returns over 33 years. Just passive investing in the index itself with no knowledge whatsoever gave such good returns. And India has 60-70% market that is not penetrated still in many many areas. India will boom like China did after 80's. So returns going forward will be even better. Even if just invested in big indexes of the market. There is an index on NIFTY (NIFTY Bank) that has gone from 4000 to 40,000 in just last 10 years. 10 times the money, for what? Just passive investing and ZERO research. So this is probably the safest investment with an even more incredible future. I don't know how much US can expand going forward but India is yet to go for the massive Bull. And the horizon for the biggest jump is just around the corner.

[@superchaz71]

"To Grow In Knowledge, Add. To Grow In Wisdom, Subtract." - Lao Tzu Ya' Really Have To Focus, To Be A Focus Investor, Though.

[@DinArviv]

But you gotta focus

[@hakshustletv]

I think it's more about risk tolerance, how well you can manage x amount of stocks and finding and investing in great stocks at fair prices rather than average stocks at cheap prices. Personally, I think finding great stocks that have long-term value and you won't have to move around too much is a great strategy and approach to take. Diversifying your portfolio just for the sake of doing so doesn't make sense. If you do it because you're unsure of how a certain industry or market will perform fair enough but for the most part, diversification should be more about recognising great opportunities in different industries or markets and trying to take advantage of that opposed to diversifying out of the fear of losing your investment elsewhere. If that's how you invest or trade then you probably don't understand investing or trading thoroughly yet.

[@MichaelReed609]

There are many options: buy and hold, dollar cost averaging, sector rotation, portfolio rebalancing, etc. You're correct. Risk tolerance and investment objectives are vitally important in determining suitability. Market, business, and political risk are also huge factors.

[@skepticoeye6785]

Right!

[@anjummadani]

What an excellent clip! Thank you Brandon Beavis. The more one knows, the less on speaks. The more one knows, the less one needs.

[@daveco3217]

For those that wanna learn I recommend reading the intelligent investor, mainly focusing on chapters 8 and 20. This book taught me more than any college degree would get you.

[@godwilling6264]

Yeah

[@crk140]

Great book

[@jonsantos6056]

"3 wonderful businesses is more than you need in this life to do very well." - Warren Buffet

[@OLOZANO]

Minute 7:40: "...and the High Priest wouldn't have any edge over the Lay people, and that never sells well." -Warren Buffet. This one sentence is packing quite a powerful punch and yet... no one has dropped a single comment about it. I wonder...

[@VroomVroom29]

What does it mean

[@OLOZANO]

@@VroomVroom29 Warren was talking about finding 3 good business Vs owning 50 different ones and feeling better off in the long term that way. Charlie added that alot of what's being thought in financial classes/courses today is a bunch of "twaddle" aka foolish nonsense and that if people actually believed what Warren was saying, that he (Warren) could teach an entire course in only a weeks time, effectively putting a ton of so called "Financial Gurus" out of business. Mr Buffet then closes out the video with the statement about the "High Priests" aka Gurus losing their power (influece) over the "Lay people" aka Newbie Investors and that was no good for business. 😎🤙

[@luckymutibo9848]

If you know what the high priest knows then he becomes useless to you

[@jhollman699]

It’s not quantity but quality. Know your investment and have the utmost confidence in them. If you find 3-5 good companies your comfortable with, I would say that is sufficient. Overexposure only increases risk imo.

[@Xaminn]

Couldn't agree more. Put all of your eggs in 3-5 baskets and then protect the hell out of those baskets

[@OopsFailedArt]

Right. On the flip side, he also indicated if you're not sure what you're doing yet then yes, diversify. I, while having spent years in the markets, have very little research time so while my positions are larger than many novices I would never have just one stock because I don't have the time or likely skill at this point to know the business well enough. I do value the business but I can only skim the 10ks which is not enough to concentrate on my opinion

[@susancull8348]

@@OopsFailedArt i

[@theexplorer7139]

Forgive me, but why is investing in more stocks bad?

[@Andersfc1000]

@@theexplorer7139 It's not a black and white world. It isn't bad. It just means you may also be diversifying your gains by diversifying your risk on a multitude of stocks.

[@iwillknifeya]

Hahaha! I didn't realise how witty these gentlemen are 🤣 Thank you for the great video, and keep up the excellent work!

[@andyosman8375]

There is so much to learn, it is there free for the taking and other trained expert forums to guide you. Unfortunately there is no holy grail nor are there any short cuts to success.

[@kaylagarrison9267]

Make sense!

[@ahmadrajpoot8797]

Yes it helps too, trading with someone more experienced

[@johnsonlevitt9719]

Andy this is huge trading performance on your trade account, well I have to see for myself I need to have a real trading experience.

[@lukehaswell3075]

Yeah sure I want my trading account to have similar results, I do think it is best for someone managing my trade account. I will get in touch with your advisory immediately

[@lukehaswell3075]

Haha Bob, being wealthy doesn’t change anything about your goals it only make it easy to achieve. Be guided and try out something new!

[@dogestranding5047]

Agree. You can only research so many companies. Focus on the best ideas instead of wasting time on your mediocre ideas.

[@pafmagazine7031]

Now Warren Buffett advise people to buy indexfunds. The video is old. And Warren Buffett has charged his mind since then.

[@heyzeus4045]

@@pafmagazine7031 Translation: He realized he revealed too much. He now wants people to stay dumb.

[@skepticoeye6785]

@@heyzeus4045 not true. He is philanthropist.

[@investedinvestor2238]

So funny! It’s great to hear from the OGs of finance. I like how Warren says, “diversification is protection from ignorance,” if you don’t know how to evaluate a business. That is exactly me at this time. Hopefully in the future I will learn how to assess a business.

[@gurnimarsingh4194]

When the legend talks everyone hears

[@sportsbettingeducation]

It depends on what you see value in. I think 3-8 is the right amount for people who follow the markets closely.

[@FeliciChipper]

I think it depends on what your looking for in your investment. I started just building up 4 different companies. The dividend ranged from 4-11 percent. What he said about valuing business is also something I have learned to do over the years and my portfolio I’ve only grown to 8 different stocks but they are quality and pay an average dividend of 11% and don’t go anywhere during an economic downturn.

[@sanjivb53]

Think of stocks as children. How many should you have to really know each one intimately? If you have 30 children, you'd probably not remember the names of some, let alone knowing and understanding them intimately. Warren did mention somewhere about having just 20 shots at buying stocks, in a lifetime. If you have to spread those 20 shots, I think 5 stocks are more than enough.

[@najmurray1018]

Underrated comment. Especially your first point, it made me think differently about diversification . Nice!

[@christianjoyner8979]

Ok, but you still dont know all the ins and outs of certain businesses. Could someone be cooking the books? Example : Enron. My grandpa got burned on that stock. That in theory sounds good. Wait till you see one of your four stocks go to zero. No disrespect to you. Just be careful

[@nabeelashiq8876]

This rule applies to endia 😂😂😂😂😂😂😂

[@flamingxflamingo5330]

What if you didnt know whether your children would die and be victim to infant mortality? You would want to keep banging and producing children right?

[@michaelhodge9883]

. p

[@bkaellner]

Depends on how well you can stomach a downturn and not act like a lemming, which is very difficult to do. I like 5-10 stocks.

[@JamesToler]

It’s on the temperament side that is the most challenging. 50 years ago those who outperformed had information edges, now it’s who has the temperamental edge. Awesome video. Thank you!

[@Kaplan20]

I guess it depends on the nature of the business? What few people fail to appreciate is that when you invest in a company like Pepsico, Abbot Lab, Berkshire Hatheway, Johnson and Johnson or Nestle these businesses are very well diversified within their respective sector. Therefore you can potentially hold one stock. If any one of those businesses were broken up they would lead to 10+ individual business units with quite a large market cap. Due to the stability of such companies,​ the stock price of these companies only goes down during a market correction. Therefore, it literally is a once in a decade opportunity to invest in such a company. A 3 stock portfolio makes it a realistic target to find exceptional companies at a huge discount. Obviously, by holding a large cash position, you can take advantage of future dips.

[@DarrellRJr]

Sounds like he follows the theory of common sense lol

[@chocolatethundercherry143]

Pretty much

[@grod805]

That's his main job. Most people who have a 401k have real job don't know how to value the market so they diversify

[@thomaslivingstone6734]

If it was common sense he’d be just another one of you dumbass peasants

[@Hauln_Ass]

icecurb has

[@joefelix1]

"Diversification is a protection against ignorance... If you know how to value businesses, it's crazy to own 40 stocks."

[@raymondhansen4482]

Joe Felix such a good quote man

[@astrosntexans]

He also says in another interview that simply owning the SP 500 index fund overtime will make you rich.

[@koolaidkitten]

To me this is like owning plants. I don't have the time and patience to deal with 40 plants in my yard. Weeding, watering, ferterlizing etc. I don't have time to research and keep up with 40 stocks. I can however keep up with 5-10 plants.

[@EMo-rx7pm]

That is why I started buying the S&P 500.

[@SFreedberg1]

@Davide Lecky Apple - 32% which of course is a bit high. Used to be higher. In my case, it's about 90,000.....seriously considering though putting all my money into S&P 500 Index. I only own 8 stocks total....

[@KerKaiZenWisdom]

Rather than to putting all your money into many baskets , put it into a couple of them that will last 20-30 years ahead. This requires due diligence to do enough research on the companies. Thanks for sharing

[@muxi0121]

This is so good. 6 stocks in my portfolio: goog, fb, jpm, jd, antm, axp.

[@gopats3624]

Dividends 🤩🤩

[@StraitKnopfler]

Elephants don't gallop

[@miltonyannis3719]

@@StraitKnopfler ....but they last many, many years and there's only a few things that can hurt them.

[@RJ-su9us]

What he actually said was, it is ok to diversify for an average investor.

[@jonfklein]

Basically, if you know what you are doing, no need to diversify.

[@welersonpawlak4088]

If you think you know what you're doing enough to not be diversified. Good luck. I suppose.

[@jonfklein]

Certainly I don't know enough not to be diversified. But somebody like Buffet can limit his diversification because he does know what he is doing.

[@jonfklein]

Agreed. Probably Buffet would also acknowledges that he wouldn't put all of his money in one stock. Myself, I just own an index fund, and my apartment. I figure that's diversification enough. No need for bonds, gold etc.

[@sohammukherjee837]

When you start off learning statistics correlation and diversification along with modern portfolio theory seems like everything but more you learn more you realise correlation can’t protect you if are in wrong business

[@andrewepperson3907]

Haha! He owns One Stock! However, that stock has the majority of household names either partial or full ownership. I would also only own Berkshire, if I was the largest shareholder. As well, I would only own one stock if I had the majority share of any company. What a great businessman.

[@sandeepvk]

Buyers Beware : This advice is meant for geniuses not plebeians

[@Stoneface_]

Tech Stuff 😂😂exactly

[@goldilockszone4389]

If you follow this advice you will be very rich y the time you are 80. What do you do with all that money. Live life today and learn to diversify

[@scsi_joe]

@@goldilockszone4389 But Buffett was already rich when he was much younger, how did he do that

[@heyzeus4045]

@@scsi_joe I imagine luck was a factor.

[@atartup]

Social fish

[@MrMarkCaudill]

You may have to try out a few companies to find your 3 good ones. The beauty is you can sell it fast if you don't like it.🤑

[@thomaslivingstone6734]

Mark Caudill oh yea and pay all the broker fees too

[@thomaslivingstone6734]

Amusis yes and continually do your research while you’re in the position

[@Astral106]

Just what I needed. Answered all my questions. Thanks so much Brandon!!❤️

[@Infinite_P]

He said this back then. Now, in 2020, he is leaving his estate not invested in BH, but invested in index funds by trust according to him. Not a hater, I own brk-b. Just an observation.

[@macacorisoto7472]

You should own as many stocks (buisness) as you truly understand and belive! My own opinion before watching this lrobably awesome video! Love from portugal broo! 🇵🇹✌

[@gdal3]

Ganda tuga pá!

[@macacorisoto7472]

@@gdal3 obrigado! ✌ vou fazer um canal de investimento tuga que nao ha nada de jeito para nós! Se quiseres segue ai no insta que o canal so fica feito daqui a uma ou duas semanas @humano_alpha! 🇵🇹🇵🇹🇵🇹🇵🇹🇵🇹🇵🇹

[@begley09]

I own about 6- financial, ETF’s, some pot stock.

[@0BRAN0]

This seems to go against the idea of owning VGRO or XGRO (something like 15k holdings) What do you say about that?

[@vacciniumaugustifolium1420]

Currently holding two stocks, on huge reflection to add two more... I follow everything about those two stocks ( forum, report, analyst, ect ... )

[@bmmk12]

Would you share either which two equities you hold, or the dollar amount per holding? Thanks

[@ahmadbasyir418]

You can’t really use the portfolio of buffett unless you’re a big time investor (multimillion/billion dollar). IMO its just not sustainable for the average investor. Hes currently using the pick wonderful companies at fair price approach as a measure to protect current investment. For the average investor imho its better for us to be observant and focus on one/two industries and try to find the best company with very promising story (better sales, management, cost structure, innovation leadership etc) with financials to backup the claims.

[@FOODREVOLUTION360]

QUALIFICATION over QUANTIFICATION is my life’s motto. It works for those that have confidence. It’s what my mother taught me as a child and I’ve passed it down to mine and it still makes the most sense.

[@cliffordlevy3918]

For a regular guy like me, 10. 1 speculat penny. The rest are low risk, divided earning stocks, all have a DRIP. 2 utility, 2 bank, 5 residential heavy REITS. I'm Canadian, I stick with Canadian stocks. Way less risk, way less shorting, than the booms and busts of American traded companies.

[@dukeofaachen2838]

If you do your research on the stocks that you invest into, try to thing about where the industry is going, etc. then diversification is a hindrance to the hard effort you've put in. If Stock A, the one you did research on, goes up steadily over the years and you keep buying shares of that, then you'll see a return that's exponentially greater than if you'd spread your money across multiple 20+ stocks.

[@MichaelReed609]

Diversifying hedges against market, business, systematic risk. If one sector fails, rotate if you see it coming. Cyclicle stocks may be an option. Time, intrinsic value and product. Its sort of like compressing a signal though. Everything on the edge of the signal is taken away. In other words high risk means high reward but also high loss. Moderate(compressed risk) will be mediocre gains but also mediocre loss.

[@Gold-oj8do]

I own one stock and it's been in my family for years, since the 1940's. It's been a good long term performer and I have every reason to believe it will do well as time goes on.I have added to it over the years and it pays a good dividend.

[@TheRealChrisBeard]

What is it

[@Gold-oj8do]

@@TheRealChrisBeard Thank you for asking Bruce Lee, chop, chop. Coke is my portfolio, and I have a quite a few shares and quite a few bottles of it in my fridge at all times. I also own an index fund though. Buffett likes those also. I do my own research though and I never knew Buffett liked index funds until a few years ago. I have books from the great Jack Bogle and love Vanguard Funds. Jack just passed away about a month ago. Awesome dude. RIP. Ty Cobb owned a lot of Coke shares also. Great product. In fact I think I'll have one after this post. Hope you do well with your investments. Gold 1792.

[@brotha1984]

I'm sure your getting a fat Dividend payment every 90 days too 🤑🤑🤑🤑🤑

[@Gold-oj8do]

@@brotha1984 Dividends are nice. AT&T pays a 6.80% at the moment. Have you ever thought about buying AT&T?

[@brotha1984]

Actually I own a few shares of T planning to buy more

[@l2ealChuckNorris]

Getting close to 10k subscribers! Congrats Brandon

[@beaviswealth]

Thanks Chase man! And for the vid inspiration :)

[@Steve_Takes]

Yea he's doing well, I very much support this channel. It'll see 100K it's still early

[@beaviswealth]

Durandisse84 Durandisse Thank you man... you know I appreciate that :)

[@aravindtiwari9702]

Congrats on 10k subscribers

[@InvestingRobinhoodInvestor]

Definitely depends on your risk tolerance and time horizon! Great video Brandon

[@rlopez2626]

I have three positions: AAPL, DIS and BAC. I use to own 9 positions but it got too difficult to manage and read the latest in each company. Three is my comfort and I understand all three businesses.

[@crk140]

Mine is similar except I have those plus sbux, pep, bmy and nke

[@IvoIvanov87]

Watched something similar (on diversification) a few days ago but great to see it Buffet as well. Personally I’m keeping my stocks up to 10 and investing only in businesses, that I know well and understand (or at least I believe so :D ) I’m a tech guy and own tech stocks mostly, I suck at diversifying, but TBH I’m sleeping fine even with a bit more volatile stocks in my portfolio :)

[@theentreprenaire9828]

Key is understanding the businesses you putting money in. Do you know how to analyze the business.

[@jerryeskridge4798]

I heard about Buffett idea of limiting stock to about a few will diverse stock maybe 10 stock in a portfolio of course good business like good utillites, Blue Chips,Growth,Technology, dollar course investing or get a great mutural fund.

[@GlennShook]

I have 16 and would like to get to prob even 20 then build them up for quite a while before adding more. Prob to many for my $ but I can’t help it. Lol

[@tyler29va]

Allen Iverson There are more great companies now. There are definitely 20 rock-solid companies that have huge long-term upsides.

[@techshark6181]

Sooooo owning 52 individual holding and another holding with another 508 different companies plus the Farm land and farm land stocks is not diversified🤔, so hold as many Dividends paying stocks as possible, ok got it😁

[@bornbranded29]

In addition to my prior post, unlike Warren, many of us aren't focused too much on analyzing a company's "amazingness," I'm a technical trader, so I try to read charts, candlesticks, MAs, volume, etc. I'm also a swing trader, so I'm not looking for long-term growth on my positions. I want that quick 5-10% and then back to studying, until the next opportunity presents itself.

[@juanfracalvo9007]

Hello! thanks for sharing this great video! please can someone tell what says Charlie in 5:58 "what it says in corporate finance courses is....what?? thanks!

[@freekvandenberg5632]

I currently own 4 stocks and plan to hold on to these for at least 3 years. The stocks are: Aurora cannabis, Canopy Rivers, Constellation Brands and Tesla!

[@Sesamestreet9080]

Freek Van Den Berg those are some risky stocks but the best of luck !

[@freekvandenberg5632]

@@Sesamestreet9080 well I think ACB is indeed very risky, however Tesla will really become a trillion dollar company without any doubt....

[@Sesamestreet9080]

Freek Van Den Berg yes Elon has the potential of making it a trillion dollar company but risky at the same time because all the debt it has ! Plus in my personal opinion I think it’s overvalued stock atm. I personally think it’s fair value is at 100 a share

[@freekvandenberg5632]

@@Sesamestreet9080 yes right now they are a little bit overvalued, however I see the revenues rising to over 500billion in the next 5 years.. also constellation brands is a very good stock

[@paulcoba8154]

I wonder if Kraft Heinz was one of his top three picks...

[@nome4305]

can you even hear his words?

[@dogestranding5047]

Paul Coba It probably doesn't even make up 5% of Berkshire.

[@HalfEatenMedia]

He’ll probably leverage himself into buying the whole company at this point and add it to his collection of business’ he owns. Kraft will need a bail out and Buffet will be the first they come to make a deal.

[@heyzeus4045]

@@HalfEatenMedia The point is: Kraft Heinz was once a wonderful company -- not anymore.

[@mikejmarvin]

KO is one

[@DylanCEdh]

Used to work at NFM. I remember hearing Buffet came in once. I was awestruck

[@JaeWest]

This dude changed my life!

[@MrGODINTHEMAKING]

He verified my strategies 🙌🏿 I got 50k in 2 stocks but I'm confident they are solid stocks with growth and a tight safety nets. Diversity on a high level is a bigger gamble. And a delusional safety net tactic

[@obiwon76]

Anyone know the year of the Buffett/Munger footage?

[@Stoneface_]

obiwon76 I think 1996

[@thomaslivingstone6734]

1927 I think

[@lalayhassan]

3-4 my opinion on holding maximum stocks.

[@jorgiewtf]

I went on a pretty big shopping spree a few days ago but that’s only cause all stocks are low from this Coronavirus and once things get back to normal, I’ll do a massive sell-off and go back to just having 3 or 4. Hope that makes sense.

[@BenRangel]

I feel like this advice only applies to the who spend serious time learning about the stock market. the average average person does not know enough about *any* business to be able to invest in their stock. For example : the average person who thinks they know a lot about tech might considers investing in Microsoft/Google but they don't know a thing about their earnings reports, if they are over or under valued, events in the market that might affect their value etc. They could not tell you what's different about Microsoft now compare to 5 years ago. If you can't know enough about even a single company- Then why would you bet on 10+ individual stocks? I feel like the average person should stick to index funds. They can at least follow along with the news about how the stock market in general is doing. But asking them to bet on company A over company B is too much.

[@samstell9291]

this is exactly what Buffett is trying to get at, you have got to remember that the shareholders he is talking to are way above average when it comes to investing and hes only suggesting that the best of this lot pick stocks

[@BenRangel]

Sam Stell Thanks for the clarification!

[@thebigcnel]

"Diversification is the protection against ignorance"-Warren Buffet. I like it.

[@scottscriticalmass]

Good video Brandon... Love these old videos on Buffett. I think you need to share ad revenues with the Mr's Buffett and Munger on this one. :) Always learn a little something watching them."Diversification is protection against ignorance." Classic!! He always answers questions in a manner anyone can understand and leaves no ambivalence to how he really feels. For me... I'm comfortable saying there's a bit of investing ignorance buried somewhere deep inside me and I'm comfortable admitting that. Because of this, I will always stay somewhat diversified while keeping my largest positions in the companies I understand the best and have the most confidence with long term. "Twaddle"... Gotta love Charlie! I'm going to start using that term in my daily life. Should play well. :-)

[@Rugbystu14]

They're both right in what they're saying. Diversification is for people that just want to save money for retirement by investing in the S&P 500, for example. I think Buffet and Munger are taking shots at those who consider themselves Pros, but, in reality, they're no better than the people investing in the S&P 500, in the long run. I'm about to start investing (nearly 26), but because I'm also building my ecommerce business, I won't be able to put too much work into researching companies just now. So, I'm thinking to invest in a few index funds and let the money grow slowly for the next few years when I'll be more prepared to invest in individual stocks. Since I invest most of my disposable income into my business, I can't commit to more than £200/month, but it's better than nothing, since it can grow through compound interest. Not by much, but at least it won't lose its value like it would in a regular bank account.

[@scottscriticalmass]

@@Rugbystu14 - Good luck with your business... I agree with what you're saying. I think the dig was at professionals and not individual investors. Buffett has said on multiple occasions that the best advice for most individual investors is an S&P 500 index fund. Most important, do what's right for you!

[@dennisgorelik]

In what year was that Warren & Charlie recording made?

[@jeronimo3030]

Quality before quantity, it´s simple

[@InvestorCenter]

I’m convinced Warren Buffett was born as an 80 year old man

[@richardnokes6438]

I would like to now what year this footage is from? Anyone?

[@kelmadeit5616]

just what i needed, thank you!

[@ma-is5qo]

haha thank God i figured out buffett and munger before i went to college, and i was still surprised that they were teaching that stuff to people. Munger is also right it makes for better teaching and testing cause u get to let time pass by but it is completely useless because academia makes it look like you have to automatically diversify, almost without even questioning why. i remember asking my tutor why and she said its because stock prices can go down and when they do its a risk but if u have say 30 at least it balances it self out. the world is fairly unbelievable in terms of what they choose to just believe when evidence is right there.

[@menthy]

Never take investing advice from someone who hasn't become a multimillionaire through investing.

[@davidhidalgo8465]

Software services, financial, pharmaceutical, pot stocks are my positions

[@owenp2170]

5-10 is a sweet spot for those who know what they are doing. Every time I try to go past 10 I have to take a second to rethink what I’m doing. Similar to Mr. Buffet, I would rather invest more into my top 3 picks than to start investing into my 11th and 12th pick. The more confident you are, the less positions you needs to take imo.

[@rbrucerye]

I own between 12 to 15 stocks. My thought process is simple. I want to be able to reasonably understand the stocks that I own. So owning more than a dozen stock it's difficult to keep track of what is happening at the company's I have stocks in. Anything more then about 16 stocks it becomes even more difficult to understand the sort of companies I own as well as the risks that each business faces.

[@joanettaobryant476]

Joanetta Greer O Bryant I agree. I put four people through college. Then I retired for the third time from Detroit . Have an interest in farming 12 acres at in Covert Michigan. Food but not blueberries.

[@rishabhpandey2529]

Summary- 1. You know what that business is doing - hold few and put more money in them. You don't know what it does - diversify , your risks will reduce but you returns will too. Quoting LOTR (I think) - "It's better to send 4 Lions in a war than a 100 sheeps! "

[@bmmk12]

I love that

[@jpcarigma]

I currently own 5 stocks in my portfolio that I feel will have a chance to beat the market 10 years from now. I want to get it to 10 stocks some day. The majority of my money is in index funds.

[@beaviswealth]

Awesome target. That sounds like the right process, slowly building up your individual holdings :)

[@deki99]

Same here. 7 stocks, wanna go up to 9-12. All of them dividend except 2 are dividend stocks. Majority (60%) in index funds :)

[@Monopolist91]

I'd say 10 stocks is plenty diversified, absolute max I'd say is 20-30 if you're doing a basket play on a sector or net-nets etc.. Less than 10 if you really know what you're doing is fine. I'd also say the highest weighting isn't necessarily the business you think you can make the most off of, but one you cant lose a ton of. For example, if an amateur private investor had 40% in BRKB or JNJ and 6 10% positions, that'd be perfectly rational.

[@atusasiretwiinerichie9131]

I think having a small group of business that are able to make it through the hitches of the stock market and keep standing before the competitors while making above average gains yearly, all with an honest trustworthy and focused management...... Would make so much sense

[@kurnyllbaya5114]

They somewhat describe the educational system right there.

[@calvinraab8798]

In my opinion its all about smart investing and quality over quantity. I would rather own a few stocks that I have ran the numbers on and am confident in than owning a bunch of stocks that I am not too familiar with just to save I have a more diverse portfolio.

[@chimchu3232]

Personally i like keeping half of my portfolio in index funds like voo and vym, and try to keep about 5 individual stocks more than that is too much to keep up with

[@MoneywithMaggie]

Great video! It's so hard to choose your three companies though...

[@BreuckelensFinest]

It's so simple folks, that we refuse to believe it bc we've been taught a lot of wrong things to do, especially with our money. "Diversification" is a term thrown around by salespeople that we refer to as broker's, bc they want more commissions to line their broke pockets. All we have to do is find 3 excellent companies to invest in, to be more than well off. Focus on great businesses, that are great systems in place, run by great people! It's that simple that hardly anyone is doing it!

[@bmmk12]

So true! Also, its more fun that way! You take pride in your ownership and the income is far more meaningful than a distribution from your ETF

[@joychatterjee2025]

To find such 3 companies you should have more than 3 companies in your portfolio, its easy to search but hard to find. If you can find such 3 companies you will be the next warren buffet.

[@sortehuse]

I think that not diversifying is perfectly fine you know really know what you are doing, but a lot of people overestimate their own ability to pick stock. For most people an index fond is probably the best option.

[@bchristian79]

I say 70% and up. Stock are great. Historical they out preform the competition.

[@catdogmouse555]

I own 500, S&P 500 crew where you at!

[@r.69704]

VYM and VYMI

[@TyKOmain]

*505

[@vacciniumaugustifolium1420]

We know we won't beat the holly S&P 500 but hey we need to try, be burnt, and then go back to the holly S&P 500, crying to haven't did it earlier : /

[@connormcleod9595]

460

[@thisisreallyverysilly]

Buffet is a genius...but he's 100% wrong...very few investment managers beat the market average over time (i.e. 20-30 years)...and if nobody can beat the market over 30 years then picking one or three stocks WHEN YOU NEED THE MONEY is, frankly, silly. It's easy to talk of moats and what not, but Sears was a wonderful business until the internet came along. Blockbuster was great until the internet came along. Buggy whips were great until the car came along. You cannot predict technological change. If Buffet loses 50% of his assets, he's fine. If you lose 50% you're eating cheerios three meals a day and hoping you die young. Huge difference.

[@linusverclyte4988]

Funnily enough Berkshire Hathaway owns or is invested in quite a lot of companies. If you buy Berkshire you buy a well-diversified company with interests in completely different sectors from energy to consumer staples to technology. Granted you don't own the whole market but a fairly representative slice of it including some of the biggest US companies.