Concentration Quote by Warren Buffett
“Diversification may preserve wealth, but concentration builds wealth.”
About This Quote
Source Annual Letter to Shareholders, Warren Buffett, 1996
Diversification reduces risk, but concentrating investments can generate greater wealth through focused expertise.
In simple terms: Diversification protects; concentration builds wealth.
Key Takeaway
Balance risk protection with focused investment.
Themes
finance
investment
wealth building
Mood
pragmatic
analytical
Type
advice
strategic
When to use this quote
- stock selection
- business ownership
- financial planning
Key Concepts
risk management
portfolio strategy
Questions to Reflect On
- What sectors justify concentration?
- How do you mitigate concentration risk?
A Different Perspective
Concentration increases exposure to failure.
