You Only Have To Do A

Buffett expressed this philosophy in his 1992 Berkshire Hathaway Chairman's Letter. It reflects his broader view that investment success does not require a large number of correct decisions — Berkshire's extraordinary performance was built on a relatively small number of very large, high-conviction positions such as American Express, Coca-Cola, and GEICO. The corollary, familiar from his "circle of competence" framework developed with Charlie Munger, is that the key discipline is knowing which situations to avoid entirely.