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In contrast to an approach recommended by that father of value investing, Benjamin Graham, to buy a large number of bargain-priced assets and sell them as soon as they had achieved a fair price for their true value, generally within about two to three years, some highly successful contemporary value investors, among them such luminaries as Warren Buffett and Charles Munger of Berkshire Hathaway (BRK.A; BRK.B), suggest that an even more lucrative strategy for investing in equities is to focus only on the very best assets and to buy shares in them only when the odds of success are so completely stacked in your favor that you would be willing to have only a half-dozen or so of these golden eggs in your basket. Buffett, in particular, emphasizes that you need have only a handful of good ideas - or perhaps just one - in a lifetime, to achieve real wealth. He advises limiting your stock selections to perhaps just one a year, or even less, and then, when you have found a superlative idea, to add to your holdings in it and hold it for the very long-term, ideally forever.
With this in mind, what, in today's still relatively inflated market, might be worthy candidates for substantial investment and a very long holding period? I am looking for assets that combine safety with low price and high value, assets that, were I to have a million-dollar portfolio, would each deserve at least a $100,000 - 200,000 allocation.
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