While there is unquestionably some truth to the idea that the world is often too random to literally make just one bet, the widely held assumption that diversification is a free lunch is just plain wrong. Just as there is benefit to be derived from diversification with respect to risk, there is a cost, too — that of losing whatever edge you might... See more

Warren Buffet and many of the best investors I know favor making a few very well-informed bets rather than opting for significant diversification.