WarrenWe think diversification is, as practice generally, makes very little sense for anyone that knows what they're doing. They, diversification is a protection against ignorance. I mean, if you want to make sure that nothing bad happens to you relative to the market, you own everything. There's nothing wrong with that. I mean, that is a perfectly sound approach for somebody who does not feel they know how to analyze businesses. If you know how to analyze businesses and value businesses, it's crazy to own 50 stocks or 40 stocks or 30 stocks probably. Because there aren't that many wonderful businesses that are understandable to a single human being in all likelihood. And to have some super wonderful business and then put money in number 30 or 35 on your list of attractiveness. And Forgo putting more money into number one just strikes Charlie as madness. And it's conventional practice, and it may, you know, if all you have to achieve is average, it may may preserve your job, but it's a confession in our view that you don't really understand the businesses that you own.
CharlieYeah, what he's saying is that much of what is taught in modern corporate finance courses is twaddle.
QuestionerDo you want to elaborate on that, Charlie?
CharlieYou cannot believe this stuff. I mean, it's a modern portfolio theory and it's, it has no utility, but I mean, it, you know, it will tell you how to do average, but, you know, I, I think anybody can figure out how to do average in fifth grade. I mean, it's just not that difficult, and it's elaborate, and, you know, there's lots of little Greek letters and all kinds of things to make you feel that you're in the big leagues, but it, uh, there is no value added.