Several times I had 75% of my net worth in one idea

[Several times I had 75% of my net worth in one idea | Warren Buffett](https://www.youtube.com/watch?v=Lo_BQRfBKBM)

## Key Points

- The interviewer mentions that [Warren Buffett](/posts/Warren-Buffett) has previously invested a significant portion of his net worth in certain ideas, such as American Express and the Washington Post in the 70s.
- Buffett confirms that there have been numerous occasions over his 50-year investing career when he would have put at least 75% of his net worth into an idea.
- He clarifies that outside of Berkshire Hathaway, his net worth has never been a substantial amount.
- Buffett mentions that there have been times when he had more than 100% of his net worth invested in things, possibly due to borrowing or leverage.
- He emphasizes that there are rare opportunities that are so compelling that it would be a mistake not to invest a significant portion of one's net worth in them, even up to 75%.
- Buffett acknowledges that there have been cases where investors have put an excessively high percentage of their net worth into an idea, citing the example of Long-Term Capital Management (ltcm).
- He highlights the importance of proper risk management and cautions against overleveraging or taking excessively large positions.
- Buffett mentions specific instances where he would have been confident enough to put a large portion of his net worth into investments, such as cap cities with Tom Murphy in 1974 and Coca-Cola.
- He states that diversification is often considered important for inexperienced or "know-nothing" investors but argues that true professionals should focus on finding safe and wise opportunities to concentrate their investments.
- Buffett suggests that there are occasions where allocating only 20% of one's net worth to an opportunity would be a wasted opportunity of a lifetime.
- He mentions that while working with smaller sums of money, he had more flexibility to load up on investments, but with Berkshire's large capital, such opportunities are rare.