4 lessons for investors on the example of Warren Buffett's portfolio (2)

Here are four lessons to be learned from Berkshire's assets:
1. Diversify carefully
Diversification is considered to be one of the most important components of a reasonable investment strategy that minimizes the overall risk of the portfolio. However, excessive diversification can often harm the portfolio, reducing potential revenue. Although Berkshire Hathaway holding company owns shares in 43 public companies in various sectors of its portfolio is not as diversified as one might think.
In the three major assets: BRK - Heinz (NASDAQ: KHC), WellsFargo (NYSE: WFC) and CocaCola (NYSE: KO) - there is 48% of total assets in public companies, or $71 billion. Ten major public assets make 81% of the portfolio value and twenty - 93%, or $147 billion.
The list of sectors in which BerkshireHathaway is investing, is also limited. Slightly more than one third of the portfolio - 34%, are located in the financial sector, and 31% are producers of consumer goods. Almost two-thirds of the portfolio is invested only in these two sectors. Other sectors with significant participation include technology companies (recently acquired shares of Apple (NASDAQ: AAPL) - 6% of the portfolio - and industry - 5% of the portfolio.
Of course, diversification of assets remains the best way to protect the overall value of the portfolio. However, it is important not to allocate funds too thinly. Probably, the best option to diversify is 15-20 packets in 3-5 sectors.