Stanley Druckenmiller: When I've looked at all the investors (that) have very large reputations — Warren Buffet, Carl Icahn, George Soros — they all only have one thing in common.

And it's the exact opposite of what they teach in a business school. It is to make large concentrated bets where they have a lot of conviction.

They're not buying 35 or 40 names and diversifying.

I don't know whether you remember that Icahn a few years ago put $5B into Apple. I don't think he was worth more than $10B when he did that.

[In 1992] when I went to tell Soros that I was going to short a 100% of the fund in the British pound against the Deutschmark, he looked at me with great disdain.

He thought the story was good enough that I should be doing 200%, because it was sort of a once-in-a-generation opportunity.

So, [these investors] concentrate their holdings. This is very counterintuitive.

In my thinking, [concentrating your bets] decreases your overall risk because where you tend to be in trouble is if you have 35 or 40 names.

If you start paying attention to one. If you have a big massive position, it has your attention.

My favorite quote of all time is maybe Mark Twain: "Put all your eggs in one basket and watch the basket carefully."