During this Berkshire Annual Meeting, Warren Buffett discussed putting seventy five percent of his net worth into one position when you’re working with smaller sums. Here’s an excerpt from the meeting:
There have been times… well initially I had 70, several times I had 75% of my net worth in one situation.
There are situations you will see over a long period of time… I mean you will see things that it would be a mistake if you’re working with smaller sums, it would be a mistake not to have half your net worth in.
I mean you really do sometimes in securities see things that are lead pipe cinches and you’re not going to see them often, and they’re not going to be talking about them on television or anything of the sort, but there will be some extraordinary things happen in a lifetime where you can put 75% of your net worth or something like that in a given situation.
You can watch the discussion here:
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