CY09 portfolio

[cif5000]

We know that Buffett has a focused portfolio. But it also has a diversified sector concentration. Personally I think the idea is to be concentrated in your allocation to a stock in one sector, hence I often alluded to the idea of recognising the alpha stock, and then try to pick other stocks from other sectors. Having more than 2 stocks in a sector in a country generally means one is undecided or not done enough homework.

Can't disagree that Buffett has a focused portfolio as his net worth is tied to BRK. However, BRK itself is widely diversified.
http://www.berkshirehathaway.com/subs/sublinks.html
http://www.cnbc.com/berkshire-hathaway-portfolio/

Even when he was managing smaller sums, each of his large positions was allocated only 5-10% of total asset. [Letter: 24 Jan 1962]

If Warren Buffett's large position was only 10%, what make us more confident than the man himself? Personally, the important job is really picking and keeping good stocks and not limiting the number of stocks in the portfolio. You get rid of a stock because it is bad, not because it is No. xxx.

Remember this? "Too much of a good thing can be wonderful."

Listen to what he has said, but also look at what he has done. Much like the dividend irony of BRK.