11 stocks that investing legends like Warren Buffett, Seth Klarman, and David Einhorn are betting more than 20% of their portfolios on
Some of the best investors in the world find success through what others may view as a risky strategy: high portfolio concentration levels.
While diversification can help protect against downside risks — which is why many fund managers put guard rails in place for how large their individual holdings can be — concentration is more of a high-risk, high-reward proposition. If those few names perform well, it can pay off in a big way. Late investing great Charlie Munger has been one of the most well-known advocates for the method.
But there are levels to this. For many funds, weighting their holdings above 10% would constitute high concentration levels. Strategists also regularly warn the S&P 500 is too concentrated in Big Tech names. As of September 1, the market’s largest company is Apple, making up just under 7% of the index, followed closely by Microsoft and Nvidia.
Some investors, however, make much larger wagers. Using data from GuruFocus.com‘s list of 145 top investors and funds, Business Insider has compiled a list of 11 stocks on which investing legends are placing massive bets by putting at least 20% of their portfolios into the companies.
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The stocks are listed in ascending order of the size of their weight in the investors’ respective portfolios.