đź’¬ Introduction
When it comes to investing, there’s one debate that never gets old:
“Should I spread my investments across many companies?”
Or
“Should I double down on a few I really believe in?”
This question lies at the heart of every investor’s strategy — and today, I’m sharing where I stand, with a real look into my portfolio.
🧠The Classic Saying: Eggs in Baskets
You’ve likely heard:
“Don’t put all your eggs in one basket.”
It’s the golden rule of diversification — spread your risk, protect your capital. It’s ideal for beginners and long-term investors who prefer safety and stable growth.
But then there’s the other side…
“Put all your eggs in one basket and watch it closely.”
— Warren Buffett
This is the concentrated portfolio mindset. You go deep, not wide — focusing on a few companies you understand and believe in, with the potential for big gains.
⚖️ So, Which One is Better?
Let’s compare the two:
| Diversified Portfolio | Concentrated Portfolio |
|---|---|
| Lower risk | Higher potential reward (and risk) |
| Slower but more stable returns | Faster growth if you’re right |
| Great for beginners or passive investors | Best for advanced investors who research deeply |
đź“Š My Real Portfolio Strategy
Right now, I follow a hybrid approach — mixing both strategies based on my conviction and risk appetite.
Here’s my portfolio breakdown:
40% in NVIDIA – This is my high-conviction stock. I believe in its future in AI and computing.
30% across 9 diversified large-cap Tech stocks – Stable companies across various sectors.
30% in 15 penny stocks – High risk, but small amounts that I’m willing to lose in exchange for potential upside. I believe in assymetric investment where the downside is limited up upside has no bars.
This blend lets me protect my money while also giving room to grow and learn.
🧠Advice for Beginners
If you’re starting out, here’s my simple advice:
Start with diversified ETFs or index funds like VOO or Vanguard Total Market (VTI).
Gradually add individual stocks as you gain knowledge and confidence.
Don’t go all-in on penny stocks or trending names without understanding them.
Know your goals — are you investing to grow wealth, protect it, or experiment and learn?
🔚 Final Thoughts
There’s no one-size-fits-all approach.
Diversification protects.
Concentration magnifies.
The trick is to know yourself. My portfolio isn’t perfect — but it reflects my current journey: learning, growing, and aiming for financial freedom.
If you’re willing to do deep research and stomach volatility, some concentration may suit you.
If you prefer a safer, more passive approach, diversification wins.
In the end, your portfolio should reflect your risk tolerance, knowledge, and long-term goals.
Let me know in the comments:
Which strategy do you prefer? Diversified or concentrated? Or do you use a mix like me?
