Hi, Lousytiming... re: Warren BuffettHi, Lousytiming,
You said:
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"I think this one will do well and I'd like to get some more given the right opportunity.
"That said, don't put a third of your
investments in it. That is NOT something Warren Buffet would do. JMO."
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Actually, Warren Buffett has a history of concentrating his investments; making big bets. Some argue that that is a key component of his success. For example, from 1981 through 1987, GEICO each year represented 31%, 33%, 31%, 31%, 50%, 43%, and 36% of the Berkshire Hathaway common stock portfolio.
When he bought into Capital Cities/ABC, Inc. in 1986, it represented 43% of the portfolio. In 1987, it was 49%.
When he first bought into Coca-Cola in 1988, it was 21% of the portfolio. Then, he kept buying--it was 35% in 1989; 40% in 1990; 42% in 1991.
Amazingly, in 1987 the Berkshire Hathaway common stock portfolio only contained three stocks: Capital Cities/ABC - 49%; GEICO - 36%; and, The Washington Post - 15%
Buying big chunks of stock in what he believes are great companies, run by great management, at a time when mis-pricing is occurring via indiscriminate or fearful dumping of the stock--is something Warren Buffett HAS done.
I leave you with another one of his many, pithy quotes: "We simply attempt to be fearful when others are greedy, and greedy when others are fearful."
Cheers and GLTA SST longs!