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How to construct a deep value stock portfolio
By The Fifth Person  •  October 24, 2016
There are two approaches to portfolio construction. In one camp, you have investors who favor a concentrated approach of fewer than 10 stocks. In the other camp, you have investors who prefer a more diversified portfolio of 20-30 stocks.

The case for concentration

Buffett probably helped popularize this idea by focusing on his “twenty punch card rule”, citing that diversification is really a guard against ignorance. Charlie Munger is as much a proponent of concentration as Buffett and is famously known for saying that three stocks are enough. However, the key difference between Buffett/Munger and the average investor is that the pair of them are probably some of the best investors that ever lived. They have had decades of experience and are simply so much better at stock picking than the average guy. It is important never to lose sight of this. Most investors will not be full-time investors, ......
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By The Fifth Person
The Fifth Person believes in spreading a message that financial literacy and sound investment knowledge can help people around the world achieve financial independence and lead better lives for themselves and their loved ones.
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