I'm unconvinced that diversification creates meaningful wealth. I think it may protect it or grow it to some degree for those who have it already and stopped moving, but I've never gained anything of note by spreading my focus across more things.
I have gained a lot by pouring myself into a thing I care about. Shooting one arrow accurately is easier than adding more arrows.
Late night thoughts.
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This rings very true for me
As an investor: perhaps “diworsification” is the case now that Bitcoin is an option (I believe this)
As an individual: it’s very clear that when you go all-in on something the roi is far higher from a intellectual capital perspective, than when spread more thinly across multiple pursuits
It's been far higher from a capital capital perspective for me. Intellect aside.
I think diversification before Bitcoin was mostly a myth too. Everything you could be in basically had the same weak fiat foundation. Real estate is a traditional example, but look how that played out in 2008. Diversifying into one giant interconnected pile of shit seems like an illusion to me. Gold maybe if you just wanted something to sit in, but it is so cumbersome to deal with that most people end up in some form of paper anyway. Even when I held my gold at a vault, it sort of only existed on paper.
Post Bitcoin, it all gets eaten anyway. And I can custody it myself to the extent I choose.
Diversifying away from Bitcoin makes even less sense if you believe I'm right about what I said here (I may not be).
Diversification for it’s own sake, just because almost everyone with a traditional finance background uses the word in their sales pitch, is never a good idea. There is power in focus.
Case in point: see how quickly your assets get cut in half if you tell your wife that you’d like to diversify your love life, and start spending your time with another blonde, a brunette, and a redhead. 😜
More important to me (than half of my assets) is that fact that my life would be fucking miserable if I had to balance another blonde, a brunette, and a redhead.
That's kind of my point, in a less warped way lol
I'm an all in kind of person and I think splitting my attention actually creates more risk and a lower quality of life. I can't reasonably claim safety in something I know fuck all about. And that seems to me what diversification really is; Handing the wheel to chance or someone else.
