Diversification is how you guarantee mediocrity.
Spread your money across 50 things and your best idea becomes a rounding error. Your winners get diluted by your fillers. You’ve built a machine that mathematically cannot outperform.
This is fine if you don’t know what you’re doing. Most people don’t. For them, index funds are a gift—automatic, cheap, impossible to catastrophically fuck up.
But if you actually have conviction? Diversification is a hedge against your own uncertainty. It’s admitting you’re not sure enough to bet on yourself.
Buffett said it plainly: diversification is protection against ignorance. He owns like five things. The finance industry owns everything and charges you for the privilege.
The uncomfortable truth is that wealth is built through concentration, not diversification. Find something you understand better than most people. Own a lot of it. Be patient.
Everything else is just sophisticated fence-sitting.