Wide diversification is only required when investors do not understand what they are doing.

Investors should remember that their scorecard is not computed using Olympic-diving methods: Degree-of-difficulty doesn't count. If you are right about a business whose value is largely dependent on a single key factor that is both easy to understand and enduring, the payoff is the same as if you had correctly analyzed an investment alternative characterized by many constantly shifting and complex variables.

I asked him what he wanted to do for his career, and he replied that he wanted to go into a particular field, but thought he should work for McKinsey for a few years first to add to his resume. To me that's like saving sex for your old age. It makes no sense.

Diversification is protection against ignorance. It makes little sense if you know what you are doing.

If you can't read the scoreboard. You don't know the score. If you don't know the score, you can't tell the winners from the losers.

What the human being is best at doing is interpreting all new information so that their prior conclusions remain intact.

The good thing is, we have household formation in this country.