diversification, page-4

It just depends.
For someone like anatol, who does so much research it brings a tear to the eye, he will have derisked his holding in NSE through his diligence. You can hold 5-10 or more stocks, but how much do you really know about them?


Compare his approach to someone who doesn't research as diligently but holds 10 stocks. So they know a little about 10 stocks and make their decisions to buy. anatol researches thoroughly and chooses to hold 1.


Which is riskier?

I've had the benefit of his good work on this stock plus my own follow up reading. I sleep very well.

NWE - well ive done my own research on that. Probably 10% of what anatol would have done, but I am also very comfortable with it.

Diversity is a good theory, all things being equal. But they never are.

The important thing is to derisk through research as much as possible. Then take your position. THe process is more important IMO than simply splitting your chips.