Diversification in investing helps spread out your risks. If your goal is to beat inflation and avoid significant losses in your portfolio, this is the strategy to follow. However, if you aim for “extreme wealth” or want to take your wealth to the next level, concentrated investing is the way to go. This approach is similar to how Warren Buffett invested when he held about 40% of his portfolio in Apple shares.
I practice “partial concentrated investing,” keeping around 70% of my portfolio in my top four stocks: UNH, NVDA, ADBE, and BABA. I plan to increase my holdings in these stocks over time. If I had to choose just one for retirement, it would be UNH, as it also provides a decent dividend.
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