Should I concentrate my investments, putting them into a few selected stocks in the hope that when one or more of them appreciate in value, it increases my net worth by leaps and bounds? Or shall I instead diversify my investments, nibbling a bit of many different stocks, ensuring that in a downturn I would not suffer too much? Concentration or diversification? This may seem a moot point, since we are always told “Do not put all your eggs in one basket!” But at the same time, we live in an age where people have become very rich just holding on a one or two investments. And this is not new, as one tycoon from a by gone era has said:
Don’t put all your eggs in one basket” is all wrong. I tell you “put all your eggs in one basket, and then watch that basket!Andrew Carnegie, 1885Andrew Carnegie has
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