RE:Charlie Munger wisdomObscure.....nice post
A few thoughts....
When I was in the business as an advisor (not an analyst) I saw many people who owned many stocks and thought they were diversified but in reality they weren't because most of what they had basically reacted the same way to Marco economic events and trends.
I looked at diversification in the sense that I wanted a variety of investments that reacted differently to macro events and broad Government policy. As an example, I have mentioned buying ENB preferred about a year ago at the height of the current interest rate cycle. So if there is an economic downturn these stocks will likely go up while common stock equities will go down. The same holds true for bonds. In the Great Recession my clients were heavily weighted in fixed income and so while equities went down 50% their portfolios actually went up or in some cases down by a little bit. After the panic was over they captured gains on their fixed income and bought equities on sale and rode the wave up.
In terms of the limitations of how many companies one can follow, I agree with you. Where we differ is that over the decades I have created a network of Deputies who know lots about things I don't know about and I trust their judgement. This allows me to have greater diversification. In fact you are a case in point as you have mentioned that I will PM you from time to time....lol
All that said, I think the key takeaway from your post and mine here is that successful investing stems from staying within your limits and make sure that one way or the other you actually know what you are invested in and can therefore make intelligent decisions about what to do when things happen.