I love this article, Brian. I’ll definitely be sharing your thoughts in a similar article that I am currently writing. Concentrated investing is overhyped. Just like shorting stocks is overhyped. They’re both sexy and get the attention from the media and the headlines, but it’s a strategy that’s really hard for most investors to get comfortable with. Not saying that some investors are not great at it, but it’s dangerous for the casual investor to think that’s the best way to make money in the stock market, especially in smaller caps, where diversification is so important and can actually power your returns more than concentration.
I love this article, Brian. I’ll definitely be sharing your thoughts in a similar article that I am currently writing. Concentrated investing is overhyped. Just like shorting stocks is overhyped. They’re both sexy and get the attention from the media and the headlines, but it’s a strategy that’s really hard for most investors to get comfortable with. Not saying that some investors are not great at it, but it’s dangerous for the casual investor to think that’s the best way to make money in the stock market, especially in smaller caps, where diversification is so important and can actually power your returns more than concentration.
Thanks Maj! I look forward to your note! I’m glad it resonated with you