Commenter DYOW, on a Berkshire and Fairfax thread writes:
This applies to concentrated bets. If you are diversified than i consider this closer to indexing and not investing – then i get it.
But I don’t understand how anyone can call a holding “an investment” and not look at all the filings, and at the least, go through every page of the 10K.
I thought quite a bit about this and I realized I am not an investor in the DYOW sense. And I don’t want to be. I refuse to waste my life holed up in a room reading financial statements. I have much better things to do.
But I have also come to realize that its pretty easy for a small investor to get excellent returns without doing much work. Net-nets are good example of a strategy that is highly effective and yet requires very little time and energy….certainly it does not require reading all disclosures.
In fact its an interesting question as to whether even Buffett himself needed to do the work he did to get the results he obtained. His early years were essentially deep value and in his later years he shifted to quality. I would argue that these asset allocations may have mattered a lot more than the particular stocks he picked.