By
Borsgade
In this interview, Guy Spier explains that in a randomly selected portfolio held over a long period, most returns come from a few big winners, while many stocks do little or lose value.
He emphasizes the challenge of intervening in a portfolio, as transaction costs and the unpredictability of outcomes often make adjustments counterproductive. Guy stresses the importance of having overwhelming evidence before making changes, noting that Berkshire Hathaway’s success similarly relies on a few key companies.
The principle, if I just pause and self-reflect, is simple to talk about and demonstrate, but it’s far more difficult to act in a way that avoids rebalancing the portfolio. It can be painful.
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