You often hear "experts" saying you should have a diversified...

You often hear "experts" saying you should have a diversified portfolio. Maybe that's true for those with enormous wealth who are in protection mode but for the average investor, diversification is a hedge for the ignorant.

Diversification, the typical way people practice, is a hedge against ignorance. Rarely would you find a lot of wealth being created by diversifying into different assets, unless all of them are high return assets (in which case diversification reduces volatility of returns).

Instead, concentration or focus creates wealth. Sure, it comes with the risk of failure. But any significant wealth is created by learning how to concentrate and focus on an asset of choice rather than by diversification.

As Warren Buffet says, "Diversification is only required when investors do not understand what they are doing".