Aswath Damodaran: Globalization Backlash
April 1, 2025
In his recent article, NYU professor Aswath Damodaran shares his thoughts on how politics, globalization, and disruption has changed the investing landscape.
François Rochon: Quality over Diversification
-
By Borsgade
- - Published
In this recent interview, François Rochon, founder of Giverny Capital, shares his insights on optimal portfolio strategy. François emphasizes a balanced and disciplined investment philosophy that prioritizes quality over excessive diversification.
Below are the key takeaways from his strategy:
- Optimal Portfolio Size: Rochon advocates for owning 20 to 25 high-quality stocks. This range strikes a balance between diversification and concentration, offering protection against significant losses while maintaining the potential to outperform market indices.
- Focus on Quality Over Diversification: While diversification is important, Rochon stresses that it should not come at the expense of quality. He recommends focusing on great companies rather than spreading investments across mediocre ones just to achieve diversification.
- Avoidance of Certain Sectors: Rochon’s firm avoids sectors like commodities and natural resources due to their lack of competitive advantages and pricing power. Similarly, he steers clear of heavily regulated industries such as utilities and healthcare segments tied to Medicare or Medicaid, citing their unpredictability.
- Simplicity and Discipline: His strategy revolves around keeping things simple by investing in outstanding businesses, maintaining a manageable portfolio size, and avoiding sectors with inconsistent profitability. This approach ensures both peace of mind and room for portfolio growth.
- Balanced Investment Philosophy: Rochon’s method highlights the importance of finding a middle ground between extreme concentration and over-diversification, combining prudent risk management with the pursuit of long-term success.
Share the news
Disclaimer of liability
The above has been prepared by Børsgade ApS for information purposes and cannot be regarded as a solicitation or recommendation to buy or sell any security. Nor can the information etc. be regarded as recommendations or advice of a legal, accounting or tax nature. Børsgade cannot be held liable for losses caused by customers’/users’ actions – or lack thereof – based on the information in the above. We have made every effort to ensure that the information in the above is complete and accurate, but cannot guarantee this and accept no liability for errors or omissions.
Readers are advised that investing may involve a risk of loss that cannot be determined in advance, and that past performance and price development cannot be used as a reliable indicator of future performance and price development. For further information please contact info@borsgade.dk
You might also find this interesting:
Bill Nygren: A Modern Approach To Value Investing
March 28, 2025
In this interview, Bill Nygren reflects on his career mistakes and lessons learned. These insights highlight the importance of balancing conviction with caution in investing and the need for value investors to adapt their strategies to include companies with significant intangible assets.
Howard Marks: Value matters more than quality
March 28, 2025
In this interview, Howard Marks shares his investment philosophy and lessons learned over his 55-year career, including contrarian investing, value versus quality and the inevitable market cycles.
Mohnish Pabrai: The Boom-Bust Mental Model
March 28, 2025
In this interview at the 2025 MOI Global, Mohnish Pabrai shares insights on his investment philosophy and current market perspectives. The conversation covers various industries and investment approaches, with particular focus on cyclical businesses and special situations.