Don't diversify your investments

You'll thank me later

Darold Trinh
August 13, 2024

Welcome To The Long Wealth Newsletter (Tuesday, August 13th). (est. 4 min read)

In today’s newsletter we will go over:

Don’t diversify your investments.

Diversification is protection against ignorance.

It makes little sense if you know what you are doing.

This is what Warren Buffet preaches.

Buffett believes in understanding a few investments rather than knowing little about many.

Spreading money across too many investments can dilute returns from your best investments.

I may get a lot of hate for this from your “typical financial guru” that says to diversify your investments.

But I actually recommend you don’t until you cross the 6-7 figure mark in your investment portfolio.

There’s no point.

You’re spreading your money across too many investments can dilute returns from your best investments.

It’s better to focus on 1-2 stocks that are undervalued.

If you do that, you can easily beat the S&P 500 year over year.

Quality > Quantity

Also a quick reminder, only not diversify if you are knowledge about the stock that you’re invested in.

Investing this way requires deep analysis and high conviction.

For most people, you’re better throwing your money into a ETF.

Darold Trinh

Long Wealth Newsletter

Subscribe To My Youtube: I have over 200 hours of free video training on my Youtube (link)
Get My Free Trainings: Want free trainings that cover everything about investing? I made free trainings that cover undervalued stocks, setting your entries and exits, technical analysis, and more. (link)
Get My Mini-Course: If you’re looking to improve your investing but don’t want private coaching, I have a course that teaches you everything you need to know (link)
Join The Long Wealth Capital Mastermind: If you want financial freedom, we have worked with over hundreds of students (apply here)

Tell me what you think. I always want to make these newsletters as useful as possible.