Paragraph to Ponder

From MacRumors.

“Warren Buffett held 245 million Apple shares as of the end of June, representing a 5.7% stake in Apple as a whole. The stock price of Apple has soared by over 57% to an all-time high this year, boosting the value of Berkshire’s Apple holdings by more than $40 billion to around $113 billion as of yesterday. Apple is by far the largest investment held in Berkshire Hathaway’s portfolio, worth more than four times as much as its second-largest holding, a $25 billion stake in Bank of America.”

Try connecting these “dots”. Because individual companies inevitably go through boom and bust cycles, conventional wisdom is that you should never have more than 5% of your total wealth tied to any individual stock. Conventional wisdom is that Warren Buffett is one of the most successful investors of all time. Buffett’s AAPL holdings represent nearly 25% of his Berkshire Hathaway portfolio or 5x more than “experts” recommend.

I’m guessing Buffett has no regrets, which begs a question, when have you benefitted in life from consciously ignoring expert opinion?

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