Warren Buffett Doesn't Follow His Own S&P 500 Advice. Should You?
Warren Buffett recommends diversified S&P 500 index funds to most investors, yet Berkshire Hathaway's portfolio is heavily concentrated in just three stocks (Apple, American Express, and Coca-Cola) accounting for nearly 46% of equity holdings. The article explains why Berkshire can sustain this concentration through extensive research, long-term buy-and-hold philosophy, and massive cash reserves—advantages most retail investors lack. It emphasizes that diversification remains the best strategy for average investors, noting that even the S&P 500 itself has become increasingly concentrated in recent years.
