40% Of All Stocks Have Experienced Catastrophic Declines

Diversification vs concentrated stock investing Concentrated investing is not advised by most wealth managers but it is advised and practiced by the majority of the world’s most successful investors. This conflicting advice presents a dilemma for those investors looking for guidance on the topic. On the one hand, there’s a wealth of information which supports the conclusion diversification is the only way to ensure steady portfolio returns without the risk of being wiped out overnight. But on the hand, this academic research looks misleading when compared to the multi-billion-dollar fortunes built by the likes of Warren Buffett and Charlie Munger…