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TIP664: The Nomad Investment Partnership Way: Quality In Business and Beyond w/ Kyle Grieve
We Study Billionaires - The Investor’s Podcast Network
Focus Your Investments Like Children, Not Assets
A concentrated approach to position sizing and diversification can lead to better investment outcomes. High-performing money managers often limit their positions to a few high-conviction ideas, thereby dedicating their resources and attention to what they know best. This strategy not only reduces risk but also capitalizes on the manager's understanding of each investment. As the complexity of managing numerous positions can dilute one’s attention and emotional investment, focusing on fewer stocks enables a more profound engagement and assessment of their potentials. An insightful analogy underscores this: while children bring their own love, stocks require a careful investment of emotional focus; over-diversification can lead to apathy towards individual investments. Recognizing when to reduce holdings can be guided by how much care and conviction one feels toward each position.
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