Concentration and position sizing is important, as everybody say. But consider a thought…You hold 2 paint companies Asian paints and berger paints. You equally allocate.money to them. So whether you invest in only asian paints or only berger paints or invest in both, your money will be compunded at 25% cagr and in 10 years , it will become 10 times. So if you choose good growth companies, who can grow equally, how does it matter whether you invest in 10 companies or 20 companies, as long as your money gets multiplied in the same manner? Kindly help me.understand this, where i am going wrong…and also what is 2× 2 framework? Kindly elaborate.
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