If you understand the business well and the current price is much more attractive than other investment options you have, it is okay to put a significant amount into it. But, if you do not understand the business well, it is better to diversify.
"It’s not crazy, if you understand the business well, and if the price is sufficiently attractive, to put a very significant percentage of your net worth in. If you don’t understand businesses, then you’re better off diversifying and fairly widely diversifying." ~Warren Buffett
Feel free to share your takeaway with me too!
[Full Videos of Berkshire Hathaway Annual Meeting 1994]
[ABOUT - Collection: Warren Buffett]
Whenever, I search up on fund managers that practice value investing. All of them done 1 common thing that is, they study whatever they can about Warren Buffett from his annual letters, annual meeting or even interviews. Hence, I decided to do the same and share it together with all of you so that we can learn and grow together :)