Lesson #5: Diversify
For a long time, I relied heavily on a single strategy I believed in and went all in.
It worked. Until it didn’t.
It’s impossible to predict the future. No matter how strong the thesis, no matter how compelling the data, no matter how good the track record looks. Markets don’t reward conviction alone.
Wealth is created through concentration. Wealth is preserved through diversification.
Both matter, but they matter at different stages.
When you’re in the wealth-creation phase, concentration can make sense. Focus, conviction, and risk-taking are often necessary to build something meaningful. But even then, being completely all in carries consequences. Peeling off 10 – 20% to diversify is never a bad idea. It buys you time, flexibility, and survival when conditions change.
Because even when you think you’re holding a flush, someone can have a royal flush.
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