One of the questions which I have got repeatedly over the last 3.5 years of this thread is why I adopt a very diversified portfolio approach.
My thoughts
The key to successful investing extends beyond the sheer quantity of companies in your portfolio; rather, it hinges on the quality of your judgment in selecting investments. Without a sufficient number of decisions, it is impossible to discern whether the outcomes were a manifestation of luck or a testament to skill.
When one invests in small companies, the spectrum of potential outcomes widens significantly. In such a landscape, diversifying one’s portfolio across a broad range of bets emerges as a prudent strategy. This is an acknowledgment that individual investments may yield varying results, with some exceeding expectations while others may fall short.
Anyone interested in this, please look at the link below where Rajeev Thakkar shares his thoughts on small and midcap investing (time stamp: 13875).
Also, please note I am unwilling to engage in further dialogue about this.
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