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Stocks B / Berkshire Hathaway


Subject:  Re: Stock Picking Getting Harder Date:  11/26/2017  8:46 PM
Author:  commoncents33 Number:  232878 of 247944

I just want to clarify something.

When I say, "pay attention to businesses that don't host
conference calls"

I didn't intend so much to focus on conference calls per se, but rather small and obscure businesses/stocks. I know you find much success there, and Charlie and Warren have both said that's where they would fish if they were small again. And I've wanted to be able to do that...and possibly reap the superior rewards there.

But recognizing my limitations (lack of time, lack of sophistication in accounting, etc) I've simply found that sticking to the universe of well-known, exhaustively-analyzed businesses is my "circle of competence" (though obviously only a subset of that large universe). Having only small fund and going with a very concentrated portfolio, I've still found this to be quite profitable. Maybe/hopefully some day--with more time available (e.g., retirement) and more knowledge and investing experience, I'll be able to apply that in the small/obscure stuff...though I think I will always stick with extreme concentration, as that's felt right to me since I first invested twenty years ago, and seems even more so as time goes on. (I've also wondered if rather than trying to shift to small/obscure businesses, I might be better served to simply complement my current approach with periodic investments in long-dated DITM call options on very-high-quality businesses when they periodically are severely cheap...I try to keep learning from Jim on this).
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