On Management

I must immediately inform you that, important though management is for any company, I adopt a statistical approach to my investments and generally consider management part of the specific risk of an investment. Like any specific risk, management risk can be diversified away. Ideally, I never invest more than 3% of a portfolio in any one security, and for an all-equity portfolio this gives me around 30 companies, and pretty good diversification. I rarely go below 25 securities (4% of the...