Table of Contents

Preface ix

Acknowledgments xiii

Introduction Concentrated Investing 1

Chapter 1 Lou Simpson: The Disciplined Investor 5
A Portrait of Concentration

Chapter 2 John Maynard Keynes: Investor Philosopher 35
The Economics of Concentration

Chapter 3 Kelly, Shannon, and Thorp: Mathematical Investors 71
Concentration Quantified

Chapter 4 Warren Buffett: The Kelly-Betting Value Investor 89
Portfolio Concentration for Value Investors

Chapter 5 Charlie Munger: Concentration’s Muse 109
Quality without Compromise

Chapter 6 Kristian Siem: The Industrialist 131
The Importance of Permanent Capital to the Long-Term Investor

Chapter 7 Grinnell College: The School of Concentration 159
Concentration and Long-Term Investing for Endowment

Chapter 8 Glenn Greenberg: The Iconoclast 177
Simple, Common Sense Research, and Tennis Shoes

Chapter 9 Conclusion 203
The Concentrated Investor’s Temperament

About the Authors 221

Index 223

About the Author

ALLEN C. BENELLO, CFA, is the chairman of White River Investment Partners, LLC, a private investment firm in San Francisco.

MICHAEL VAN BIEMA is the founder and managing principal of van Biema Value Partners, LLC, and coauthor of Value Investing.

TOBIAS E. CARLISLE is a partner at Carbon Beach Asset Management, LLC, and author of the books Deep Value and Quantitative Value and the Greenbackd.com blog.

Reviews

“…this is an original approach to both value investing and diversification, and brings a new perspective to some familiar topics.” (Money Week, May 2016)