Buffett Letter: 1964 semi-annual 1
1964 Semi-annual 1 Mr Buffett re-emphasizes the point on maintaining an edge over the index. He says if we can maintain this edge over a long period of time the results will be satisfactory both financially as well as philosophically. Views on diversification: I've never gone overboard for Noah's ideas on diversification either. I slightly differ on this. I feel a certain level of diversification is absolutely necessary when the definite edge is not known. There is a probability associated to every trade and if that is low there is no point betting the house on it. That is being plain stupid. Mr Buffett being a genius in this domain would know his odds very well in such trades. He reiterates all that he has said on his 3 classes of investing strategies - the generals, the workouts, the controls. Skin in the game is extremely essential in money management I believe. Mr Buffett Says - I can't promise results but I can promise a common destiny He adds a new case s