Charlie Munger on Investment Concentration versus Diversification
Active versus Passive Investing Charlie’s advice to other people on investing is very different depending on the nature of the investor. “Our standard prescription for the know-nothing investor with a long-term time horizon is a no-load index fund.” http://www.myinvestmentforum.com/category/sgfunds-forum/interview-with-charlie-munger-t1655.html What is a “know nothing” investor? The answer is simple for Charlie: a no-nothing investor is someone who does not understand the economics of the specific business in question. As was pointed […]