We're constantly told that diversification is the only free lunch in finance. Yet most of the world's top investors choose not to eat it.

Warren Buffett, Charlie Munger, John Maynard Keynes, Lou Simpson, George Soros. All run concentrated portfolios.

Today's guest on the Rules of Investing is similarly esteemed, with a similarly concentrated portfolio.

Claremont's Bob Desmond runs a portfolio of just 10-15 "quality growth" stocks. And many of the stocks he owned during the 'free money' period of high liquidity and high growth are the same stocks he owns today.

In today's episode, Bob explains why quality growth is the best strategy in all markets, why investors shouldn't react to "bear porn" headlines, why nVidia might not be overpriced despite its recent run, and the one stock he would love to own "forever".

Note: This episode was recorded on Monday September 11, 2023. Timestamps 0:00 - START 1:46 - Surprises and uncertainty 2:46 - Is nVidia overvalued? 8:14 - Predicting the future is a mug's game 9:40 - Trouble at Apple 12:09 - Markets change, so pick companies that [mostly] stay the same 15:40 - Forever stocks 17:41 - High conviction bias 21:50 - When's the right time to sell? 26:50 - Don't get sucked in to "bear porn" headlines 28:30 - Do investors sell out of growth too soon? 34:10 - Sidestepping the GFC 35:30 - Quality is armageddon armour 41:01 - A bullet proof business model Want access to stock ideas? You told us you’re looking for an edge in investing. As the principal sponsor of Livewire Live 2023, Bell Direct is giving you exclusive access to 3 Bell Potter stock reports each week PLUS the chance win a share of 3 million Velocity Frequent Flyer Points. Get your reports and enter the Velocity competition now. Competition ends 31 October 2023. Entry conditions and eligibility criteria apply. NSW Authority No. TP/02866, SA Permit No. T23/123, ACT Permit No. TP 23/01592 Get my 3 Bell Potter stock reports now.

Bob Desmond names his ”forever” stock

The Rules of Investing

Bob Desmond names his ”forever” stock