Forgo Owning Overvalued Securities Constructing a Portfolio on Your Highest Conviction Idea

Shifting Concentration to Increase Value

If I didn’t have partners, the concentration [65% of the portfolio in the top seven stocks] would be even higher. A company compounding capital at way above average rates, when I have great confidence that will continue and the valuation is modest, I want to own a lot of that. The rationale is that simple.