Both strategies can be valid and may co-exist, depending upon the investor’s overall portfolio Allocation to equity, his/her other liabilities, source of income, lifestyle expenditure etc.
Entering into a particular stock at favourable price point (valuation) will prove single stock thesis correct.
Someone with 50K investible capital may afford to experiment with one or two names, but same may not be true if the capital is 10x and with higher age (superannuation) & earnings decreasing, but it is assumed that with few years of personal experience in equity, one understands his own temperament and changes his behaviour to create wealth and not to massage ego alone.
We can learn from experiences of others…
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