8. “Only Confused People Diversify Their Investments”

To most Indian investors, diversification is the key to the safety and growth of their investment portfolio. However, Buffett does not believe in diversifying. It might sound strange and even downright outrageous to most investors but Buffett never advocates diversification. According to Buffett, investors should be patient enough till the price of their preferred stocks, majorly belonging to “fundamentally strong” firms, become undervalued. He also advises investors to save their earnings so that they do not face shortage at the time of investing.