Why everyone needs to diversify and why I don't like to diversify.
Diversifying sucks. Like I mean, I really don't care to look up how one company is doing after I've bought stocks in it, why would I want to know how ten companies are doing? Furthermore if I diversify into many different skills then someone will have passed me by on the most important skills. But I want to think about diversifying when buying individual stocks. I was watching Warren Buffet give a speech on YouTube. He talked about how five to seven stocks are enough for diversification. But then something amazing happens, the guy starts talking about how he missed out on the opportunity to buy Fannie Mae. I just pulled up Yahoo finance, FNMA is trading at like 2.06 USD. For all intents and purposes it does not look like it would have been a great investment to buy and hold for a lifetime. Yet here is the Oracle of Omaha, regretting his decision not to purchase Fannie Mae. Another video on Youtube is Peter Lynch introducing people to stock market ...