Diversification is for suckers
Just ask any billionaire, if they got there by diversifying.
“Keep all your eggs in one basket, but watch that basket closely.” - Warren Buffett
Warren Buffett has often said, "I could improve your ultimate financial welfare by giving you a ticket with only twenty slots in it so that you had twenty punches - representing all the investments that you got to make in a lifetime. And once you'd punched through the card, you couldn't make any more investments at all. Under those rules, you'd really think carefully about what you did, and you'd be forced to load up on what you'd really thought about. So you'd do so much better."
Why? Too often investors throw money around like scattering seed, saying to themselves, "I'll throw a little here and little there to see what happens." Instead, Buffett advocates a policy of finding the best and richest soil, planting substantial amount of seed in it, and protecting it. This policy may sound simple, and it is. It also can be life changing. Lou Simpson, one of the best investors in the world and head of GEICO's equity portfolio, once said that this particular Buffett strategy helped him enormously in his record of crushing the market over several decades.
If you rank your best investment ideas and kill the lower grade ones (in terms of risk/return & certainty), you are inevitably going to improve your performance. Greenbalt in one of his studies says, adding more than 6-8 stocks to your portfolio has little impact in reducing portfolio volatility. You are much better off with smaller number of stocks that you understand.
Happy Investing. You will do well
Hakuna mtu anayeweza kuendelea kwakuwekeza vtu vingiiiiiiiiiii! be specific either to 2/3 ambavyo unaweza kuvimudu, sio kila sehemu kidogo kidogo.
mfano.
1.unakuwa na kibanda cha chips pasua kichwa
2. mtu wa boda boda
3. stationary
4.duka la bidhaa
5. upo shule
6.unauza maji
:) usifurahishe uma, fanya mawili au matatu unayoweza kwanza kwa ustadi kisha fungua nahayo mengine ukishayaweza hayo machache. kwani usipoweza kufanya vzr machache utaishia kulalamika nakuona kazi zako zinakutesa.
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