Few bets, Infrequent bets, Big bets!

Found an interesting study on portfolios of top value-managers at gurufocus.com..

LINK

Shows how concentrated a portfolio the top value managers run. Its a direct outcome of kelly formula - if you know something, and odds are in your favor and if you have conviction, bet big!

Its specially relevant for small sized funds, where a manager can cherry pick opportunities and make greater allocation towards his best ideas.

One may ask - Does too much concentration involves risk? Mr Buffett says - risk comes with not knowing what you are doing! A value-investor should not be in a business of "accumulating" hundreds of stocks, but cherry-picking just few value opportunities.