On super-concentration (thread👇)

I did it (90-100% in one stock, $AAPL) for 10 years, incl GFC

Moreover, I periodically levered to 200% 👀, resulting in at least one blow-up along the way 🥴

Survivorship bias aside, I beat the index and have some lessons to share 👇

1/15

https://twitter.com/ecommerceshares/status/1433560119422242821

First: Why was I so reckless to contemplate this kind of risk?

A1: I was young & just started investing

Concentration can be good (w/ some skill & *lots* of luck) for capital accumulation.
It's *terrible* at capital preservation, but I didn't have capital to preserve yet!

2/15

🔥This is a (timely) must-listen for any investor 🔥

Grantham exudes wisdom and encyclopedic knowledge of market history with each answer (great questions, @patrick_oshag!)

Some highlights in thread below (transcript courtesy of @joincolossus )

1/n

https://twitter.com/patrick_oshag/status/1364195544529317890

On bubbles going further than anyone can imagine, and the difficulty of being a value investor or growth skeptic.

Japan 1989 went to 65x trailing P/E!

2/n

‼️Add to your “Signs of a top” ‼️:

The “investor” profiled at the top of this WSJ article has a TSLA 2025 target of $20,000 ($20T market cap). His $10M+ portfolio is 100% TSLA stock and calls *on margin* ‼️

This could be a thread, but I don’t know what else to say. 🤷‍♂️ UPDATE: Mr BB is rapidly expanding into “educating” new investors on his success and approach. Quickie YouTube podcast concludes with “we’re *contrarians* here”! 😬🤣