Diversification is a hedge for ignorance!
"The best results are achieved through concentration, by putting your eggs in a few baskets that you know well and watching them very carefully," IBD founder William J. O'Neil wrote in "How To Make Money In Stocks."
"The winning investor's objective should be to have one or two big winners rather than dozens of very small profits," O'Neil added. Diversification is "plainly and simply often a hedge for ignorance."
I am with Bill in life if you want to make real money, you have to focus and concentrate. if you are good in everything you are good in nothing.
in the investment world when i find someone that has many positions and keeps making money i know this guy is a casino! i like to be the owner of a casino. To buy the S&P is to be the casino. It works fine.
is it possible to make more money with concentration, i think yes
how?
just do more of what is working, put more money in what is working
in our Globalized world the winner takes all and often the winner multiplies by 10 or 20.
When winners are taking all, it's often time to buy the winners
JASON ZWEIG
Modern capitalism is built on the idea that as companies get big, they become fat and happy, opening themselves up to lean and hungry competitors who can underprice and overtake them. That cycle of creative destruction may be changing in ways that help explain the seemingly unstoppable rise of the stock market.
New research by economists Gustavo Grullon of Rice University, Yelena Larkin of York University and Roni Michaely of Cornell University argues that U.S. companies are moving toward a winner-take-all system in which giants get stronger, not weaker, as they grow.
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