Diversify to Reduce Risk

The speaker highlights the risk of having a highly concentrated net worth in one company, advising employees at NVIDIA to diversify their investments to mitigate potential losses. Despite the company's stock potentially doubling, the speaker emphasizes the importance of reducing risk by not having more than 90% of net worth or over a million dollars invested in a single company. Loss aversion theory is also mentioned as a reason to avoid high concentration of wealth.