How your portfolio diversification may turn into 'di-worsification'? Ace investor Charlie Munger explains
New Delhi, May 14 -- Late billionaire investor Charlie Munger once warned investors against excessive portfolio diversification, calling it "di-worsification" - a term he used to describe over-diversifying investments to the point where returns and conviction both suffer.
A five-year-old video clip from the Daily Journal Annual Meeting has resurfaced on social media platform X, bringing renewed attention to Munger's investing philosophy at a time when retail investors trade with caution amid worries over the global geopolitical tensions.
In the clip, the Vice Chairman of Berkshire Hathaway, Charlie Munger said many investors mistakenly believe that owning a very large number of stocks makes them more sophisticated investors.
"A lot of ...
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