Concentrated portfolio approach view of legendary investors portfolios

James Sullivan |

The best investors in the world just updated their holdings. Main takeaway. These great investors all manage very concentrated portfolios. They don't practice the investment theory of diversification. Hence they consistently outperform year after year. Let's dive into the Portfolio of Warren Buffet, Bill Ackman, and a few more.

Warren Buffett: 80% of the WB portfolio is held in 6 companies.

Bill Ackman: 80% of Bill Ackman's portfolio is held in 5 companies

Howard Marks: 50% of HM's portfolio is in 3 companies

Li Lu: Li Lu owns 5 companies. That says it all!!!

 

I know many of you have never heard of most of these investors. However, at SWCM we closely monitor the holdings of these legendary investors. We also practice the concentrated portfolio approach, as this is the best way to get outsized returns over the long term.

If you own an old 401k or retirement account for the most part you will own over 500 companies and are paying for underperformance. It's time to roll it over to an IRA and invest wisely. I am always willing to discuss this approach to investing If there is anything on your mind regarding your investment portfolio, please do not hesitate to give me a call or reply to this email. 

I am always here as a resource for you.

 

Disclaimer:

The information in this material is for general information only and is those of the author, not a recommendation or solicitation to buy or sell investment products. This material was developed and produced by James Sullivan who is not affiliated with the named broker-dealer. Always consult with a tax or legal advisor for a comprehensive review of your situation.  Dollar-cost averaging will not guarantee a profit or protect you from loss but may reduce your average cost per share in a fluctuating market. Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing.  A diversified portfolio does not assure a profit or protect against loss in a declining market. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.