Get updates delivered to you daily. Free and customizable.
Markets Insider
11 stocks that investing legends like Warren Buffett, Seth Klarman, and David Einhorn are betting more than 20% of their portfolios on
By William Edwards,
5 hours ago
Warren Buffett
Kevin Lamarque/Reuters
Some top investors prefer high portfolio concentration levels.
While diversification protects against risks, concentration is a high-risk, high-reward proposition.
Apple and Occidental Petroleum are among the stocks that some investors have at least 20% of their portfolios in.
Some of the best investors in the world find success through what others may view as a risky strategy: high portfolio concentration levels.
While diversification can help protect against downside risks — which is why many fund managers put guard rails in place for how large their individual holdings can be — concentration is more of a high-risk, high-reward proposition. If those few names perform well, it can pay off in a big way. Late investing great Charlie Munger has been one of the most well-known advocates for the method.
But there are levels to this. For many funds, weighting their holdings above 10% would constitute high concentration levels. Strategists also regularly warn the S&P 500 is too concentrated in Big Tech names. As of September 1, the market's largest company is Apple, making up just under 7% of the index, followed closely by Microsoft and Nvidia.
Some investors, however, make much larger wagers. Using data from GuruFocus.com 's list of 145 top investors and funds, Business Insider has compiled a list of 11 stocks on which investing legends are placing massive bets by putting at least 20% of their portfolios into the companies.
The stocks are listed in ascending order of the size of their weight in the investors' respective portfolios.
TWC Enterprises
MarketWatch
Ticker: TWC (traded on the Toronto Stock Exchange)
Investor betting on the stock: Francis Chou, manager of the Chou RRSP Fund
Get updates delivered to you daily. Free and customizable.
It’s essential to note our commitment to transparency:
Our Terms of Use acknowledge that our services may not always be error-free, and our Community Standards emphasize our discretion in enforcing policies. As a platform hosting over 100,000 pieces of content published daily, we cannot pre-vet content, but we strive to foster a dynamic environment for free expression and robust discourse through safety guardrails of human and AI moderation.
Local News
Comments / 0