added by sari · updated 2y ago
Why Diversification Results In Mediocrity
- Focus forces brutal prioritization
Making few bets forces you to make hard decisions. It’s extremely hard to measure the value of something against some abstract and absolute notion of value.
Proponents of diversification argue that it takes the edge off of making a mistake. That would be a good argument if people acted the same way independent of t... See morefrom Why Diversification Results In Mediocrity
Luc Cheung added
- “Diversification is a protection against ignorance. It makes very little sense for those who know what they are doing.” -Warren Buffet
from Why Diversification Results In Mediocrity
Luc Cheung and added
- By definition, you will likely succeed a vanishingly-small percentage of the time, but—as the saying goes—that’s a feature, not a bug. The point is to venture—fistfuls of money in hand—at the furthest extremes of capitalism, hoping to stumble upon that rare, proper intersection of technology and commerciality.By design, most investments will miss t... See more
from This Time is Different by Tom White
Tom White and added