As practiced, diversification makes very little sense for anyone that knows what they’re doing. Diversification is a protection against ignorance. If… - Warren Buffett

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As practiced, diversification makes very little sense for anyone that knows what they’re doing. Diversification is a protection against ignorance. If you want to make sure nothing bad happens to you relative to the market, sure you should diversify. There's nothing necessarily wrong with that...but in our view, true diversification is simply a confession that you do not truly understand the businesses that you own. If you find just 3 wonderful businesses in your lifetime, you'll get very rich.