Eoin Treacy's view

Allen Benello, a long-time subscriber to FullerTreacyMoney, kindly forwarded me a copy his book, Concentrated Investing, written in conjunction with Michael Van Biema and Tobias Carlisle. 

I read it earlier this week and what I found of particular value was the thread of commonality between the strategies deployed by some of the world’s most successful investors. 

Through interviews with highly successful investors like Lou Simpson and Kristian Siem as well as an intimate analysis of the strategies deployed by Charlie Munger and Warren Buffett a number of common attributes appear. 

Concentrating positions in a small number of holdings definitely holds out the potential to enhance returns but also magnifies the risk of loss. 

Therefore having an intimate knowledge of what you are buying, preferably with experience in the sector is vital. Having the patience to wait until the timing is right to capture the value represented by that knowledge is equally important. That speaks to the temperament of successful investors who are willing to act on their opinions despite the fact the majority of other investors will be expressing the opposite view. 

?The discussion of the Kelly formula for sizing positions was also of interest. I intend to do some additional analysis of this subject and sense that it will help enhance my personal trading.