Whenever this comes up I share this quote from Seth Klarman: “Diversification for its own sake is not sensible. This is the index fund mentality: if you can't

Whenever this comes up I share this quote from Seth Klarman: “Diversification for its own sake is not sensible. This is the index fund mentality: if you can't beat the market, be the market. Advocates of extreme diversification — which I think of as overdiversification — live in fear of company - specific risks; their view is that if no single position is large, losses from unanticipated events cannot be great. My view is that an investor is better off knowing a lot about a few investments than knowing only a little about each of a great many holdings. One's very best ideas are likely to generate higher returns for a given level of risk than one's hundredth or thousandth best idea.”