05/26/2026
Concentrating your investments symbolizes CERTAINTY. You are certain that you are right. Even if that concentration is in cash.
Diversification on the other hand symbolizes HUMILITY. You are not certain you’re right, so you diversify to make sure that at least some of your money was invested in the winner of the day/week/month/year/decade.
Concentration typically leads to regret. While diversification typically leads to success.
We’ve all made mistakes, and sometimes the world is a scary place. It’s normal, and human, to want to change your strategy to move to cash during uncertain times. But always remember, the answer to uncertainty is NOT concentration, it is diversification.