This strategy of splitting into extremely low and high risk investments makes little sense to me. Knowing that some sector is high volatility doesn't help you

This strategy of splitting into extremely low and high risk investments makes little sense to me. Knowing that some sector is high volatility doesn't help you "prepare for black swan events". Okay, some of these stocks may go off like a rocket. But you don't know which one/ones. So you're still just getting whatever the expected value is, so you may as well just be buying the index (unless you have a particular utility curve that over-values a critical mass of money, eg to start a business). Let's say you're gambling on rolls of a die. You pay $1 per roll, and on 6 you get $6, on 1-5 you get $1.50. How often should you guess 6? I hope you'd answer "never". Okay. Now ignore the payoffs, and just try to pick correctly as many rolls as possible. How often should you pick 6 for this goal? People want to say 1/6th here, when the answer is, again, "never". I think this investment strategy falls into a similar trap. You know that there are these stocks that have a low probability of massive success. This feels like information, so you want to throw some money on them. But all the probability of success can tell you is what their expected value is, since you dont know which one will succeed, just as you dont know which roll of the die to bet 6 on.