Third Stage – (1990 – present) (60 years old – present)
By the early 1990s, Buffett and Munger faced 2 big problems:
- Their size was too large, meaning that they now owned many companies (logistics became very difficult to organize). Thus, a KEY CONCEPT came out of this – Buffett believes in non-diversification – instead of spreading your eggs among many baskets, put all your eggs in that one basket and guard it.
- The turbulent times means that stocks in the next 20 years won’t repeat what happened in the past 20 years.