The Anti-Thesis Of Diversification

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I have a friend who cleaned up on Apple over the years. He traded it, catching most of the ebb and flows. He was able to ride the waves up while avoiding the ones down.

In this video I discuss the idea of knowing something to well that one is an expert at it.


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Bang, I did it again... I just rehived your post!
Week 24 of my contest just started...you can now check the winners of the previous week!
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Going all in?

I also call it MIN/MAX strategy.
In gaming it's called glass-cannon strategy.

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Summary:
In this video, the speaker discusses the concept of going all-in, focusing on a single asset instead of diversifying. He shares an anecdote about a friend who made significant profits by solely trading Apple stock. The speaker emphasizes the importance of expertise and deep research in a few select assets rather than spreading investments across multiple areas. He mentions successful investors like Warren Buffett, Jeff Bezos, and Elon Musk who have demonstrated success by concentrating on a few key investments. The speaker encourages viewers to consider investing deeply in a few assets rather than trying to be a jack-of-all-trades.

Detailed Article:

The speaker highlights the strategy of going all-in on a single asset as opposed to diversification and presents the story of a friend who successfully traded Apple stock, emphasizing the importance of focus and expertise. The friend's strategy involved swing trading on Apple, leveraging his knowledge of the company and market trends to ride waves of growth over several years. The speaker underscores the significance of extensive research and a deep understanding of the asset being traded.

Drawing parallels to notable investors like Warren Buffett, Jeff Bezos, and Elon Musk, the speaker emphasizes the trend among successful individuals of concentrating investments rather than spreading them thin. They point out how these wealthy individuals focus on a few key investments, showcasing the effectiveness of this approach in building substantial wealth. The speaker notes that while Buffett has invested in various stocks and companies over the years, his substantial gains have often come from a select few key investments.

The speaker challenges the common inclination towards diversification and urges viewers to consider the potential benefits of becoming experts in a handful of chosen assets. They suggest that substantial profits can be attained by deeply investing in just one or two assets that take off significantly. The speaker illustrates this point by referencing individuals who made substantial gains by steadfastly holding onto assets like Apple, Amazon, and Microsoft for extended periods.

Additionally, the speaker applies this principle beyond traditional stocks to alternative assets like cryptocurrencies. They highlight how some individuals have amassed wealth by solely focusing on assets like Bitcoin or precious metals such as gold and silver. The speaker reiterates the importance of prudence in money management while advocating for a focus on assets with the potential for significant returns.

In conclusion, the speaker encourages viewers to reconsider the conventional wisdom of diversification and instead consider the benefits of concentrating investments in a few chosen assets. By emphasizing the potential for substantial gains through expertise and commitment to selected investments, the speaker advocates for a more focused and strategic approach to investing for long-term success.

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