Ann: Quarterly Activity Report and Appendix 5B for 30 June 2024, page-26

I think it's hard to be overweight in the best company, that is grossly undervalued, that you can find. Having said that I appreciate the importance of risk management but don't think diversification is a risk management strategy. Buying undervalued assets does that job much better.

I, like Charlie Munger, see diversification as a road to average returns.

I'm very wary of diversification for diversifications sake. Nothing wrong with having a lot of eggs in a good basket.

Whilst I agree that you shouldn't have all your money in copper, I'm a great believer in having all I've got in a sector in the best one I can find.

I would be interested to hear which other copper positions you think have better prospects than HGO @ 6c in the next couple of years.


Charlie Munger had an interesting view on diversification and even with that its worth noting that Birkshire Hathaway's long term rate of return is in the low teens. Not hard to do a lot better than that in good well managed small caps with a good business plan. Little fish are sweet.



“The idea of diversification makes sense to a point - if you don't know what you're doing. If you want the standard result and don't want to end up embarrassed - then of course, you should widely diversify. But nobody is entitled to a lot of money for holding this view."