Concentration vs diversification

Concentration vs diversification is usually framed as a debate; the data says they are phases. Concentrated ownership (one business, all your effort) is how nearly every large fortune was created; broad diversification (index funds, property, bonds) is how fortunes are kept. Getting the order wrong in either direction is expensive: diversifying away your engine too early caps the upside, staying concentrated after winning risks the whole score.

First used in: 0.3 · The three engines and the ladder