Diversification Isn't The Solution

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You've probably been told in time past, that you should never invest in just one or two things. That you should diversify, you should invest in many different assets, so that when one asset is losing, another is winning; and you'll always be in profits. But sadly, that's not true.

The fact is that diversification isn't the solution you're seeking to make money. In no sense, is doing many different things ever the solution. There's usually only one truth. As a human being, it's much easier to become a master in one field, than to diversify.

Imagine a person going into the university to study: Maths, Zoology, Law and Accounting; all at ones. Will that person be able to fully understand any one of them? It's very unlikely; because these are just too diversified. Then why will you let anybody make you believe that diversification is good?

Examine the lives of the richest men, you'll see that they chose a particular field, and became a master there. And then perhaps stretch to a related field for another business opportunity. They never go far away from what they're good at, or their initial business. It's usually kind of connected.

This is also true for investors in markets. The best investors of all time, usually have only like 1 or 2 projects that they're heavily invested in. And it's never in very diversified industries. When they understand one industry, they invest big right there. It's wrong for you to invest into like 40 projects; all in the name of diversification.