Saved by sari
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 more
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 more
Why Diversification Results In Mediocrity
Luc Cheung added
But life is not a portfolio: not for a startup founder, and not for any individual. An entrepreneur cannot “diversify” herself: you cannot run dozens of companies at the same time and then hope that one of them works out well. Less obvious but just as important, an individual cannot diversify his own life by keeping dozens of equally possible caree
... See morePeter Thiel, Blake Masters • Zero to One
On the other hand, if you want to achieve superperformance, diversifying your portfolio too much is counterproductive.
Mark Minervini • Think & Trade Like a Champion: The Secrets, Rules & Blunt Truths of a Stock Market Wizard
Adaku and added
When you pursue a single goal in exclusion of everything else, you become blind to opportunities. This limits your upside potential while positioning you to be harmed by any event
Daniel Vassallo • Daniel Vassallo on Applied Antifragility – Visión Periférica Podcast • Podcast Notes
sari added
Most investment managers are in a game where the clients expect them to know a lot about a lot of things. We didn't have any clients who could fire us at Berkshire Hathaway. So we didn't have to be governed by any such construct. And we came to this notion of finding a mispriced bet and loading up when we were very confident that&... See more
Charlie Munger • A Lesson On Elementary, Worldly Wisdom As It Relates To Investment Management & Business – Charles Munger, USC Business School, 1994
Daniel Bakalarz added
"The job is, however, not to set priorities. That is easy. Everybody can do it. The reason why so few executives concentrate is the difficulty of setting 'posteriorities'—that is, deciding what tasks not to tackle—and of sticking to the decision."
“Even today few businessmen understand that research, to be productive, has to be the 'disorganizer,' ... See more
“Even today few businessmen understand that research, to be productive, has to be the 'disorganizer,' ... See more
3 journal prompts + 3 Drucker quotes
Briar Harvey added
Peter Drucker