Michel Pireu Columnist

“Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees,” said Warren Buffett in his 1996 letter to Berkshire shareholders. “Should you choose, however, to construct your own portfolio, there are a few thoughts worth remembering.

“Intelligent investing is not complex, though that is far from saying that it is easy. What an investor needs is the ability to correctly evaluate selected businesses. Note that word ‘selected’:  You don’t have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital.”

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