How many stocks do you need to be right on to get rich? A lot fewer than you think, according to Warren Buffett.
In this clip from a talk he gave at Georgetown University in 2013, Buffett said that investors who try to be experts on everything are doing themselves a disservice. “It’s a terrible mistake to think you have to have an opinion on everything. You only have to have an opinion on a few things.” Buffett says that investing is a bit like hitting in baseball — you hit for a better average if you wait for the right pitch rather than swing at everything. “You don’t need 20 right decisions to get very rich,” he said. “Four or five will probably do it over time. So I don’t worry too much about the things I don’t understand.” For the full interview, click here.