the Sheep Get Slaughtered
“The Beginner needs diversification until he learns the ropes.
It (diversification) might be necessary where no intelligent supervision is likely. Otherwise, it is an admission of not knowing what to do and an effort to strike an average.
The intelligent and safe way to handle capital is to concentrate. If thing are not clear, do nothing. When something comes up, follow it to the limit, subject.
The greatest safety lies in putting all your eggs in one basket and watching the basket. You simply cannot afford to be careless or wrong. Hence, you act with much more deliberation.
….Of course , we always have to remember that “one man’s meat is another man’s poison”. The greatest safety for the capable I might say lies in putting all one’s eggs in one basket and watching the basket. The beginner and those who simply find their investment efforts unsuccessful must resort to orthodox diversification. “
Gerald M Loeb
The Battle for Investment Survival