but the unrealized loss also will be greatly magnified and volatility. so how do u control ur emotions ?
I have nothing against focus investing but just want to share the thinking from the diversification camp.
1. A/B/C might make >100%? But the thing is which are A/B/C?
2. A/B/C return -20%?
So to do focus investing, one must really know the companies very well to reduce the risk of the unknown.
Best A/B/C might be the worst A/B/C in realty. Even professions can make quite some mistakes...Concentrate or diversify each has its own advantages and disadvantages
but the unrealized loss also will be greatly magnified and volatility. so how do u control ur emotions ?
I have nothing against focus investing but just want to share the thinking from the diversification camp.
1. A/B/C might make >100%? But the thing is which are A/B/C?
2. A/B/C return -20%?
So to do focus investing, one must really know the companies very well to reduce the risk of the unknown.
Best A/B/C might be the worst A/B/C in realty. Even professions can make quite some mistakes...Concentrate or diversify each has its own advantages and disadvantages