Accumulate vs Diversify

Concentrate to Accumulate and Diversify to Preserve Wealth

To create winning investments, find your best ideas and concentrate your investable money accordingly. For each investment, it is necessary to write down and explain the reasons why you believe a particular investment will succeed and in what time frame. This explanation of your idea may be referred to as an Investment Thesis. The more money you have invested, the more research you should do and the more confidence you should build in your investment thesis. As you gain larger amounts of money, diversifying your investments in different asset types, industries and businesses can help to preserve capital over time.