Concentration versus diversification. You concentrate to get rich, you diversify to stay rich. This is Jonathan Satovsky of Satovsky Asset Management. On today’s episode of “Seeking Wisdom, Wealth, and Wellness,” I want to talk about how joyful it is to concentrate and get rich, because it is, it absolutely is.
Listen, if you owned technology stocks in 2023, it’s pure heaven. But if you owned technology stocks in 2022, it was hell. If you owned energy in 2022, it was heaven. And in 2023, not so good.
So, you’ve got to understand that what’s amazing at a moment, depends on the magnitude of the roller coaster you want to ride. But if you want to smooth out your path, and have calm confidence, and control the controllables–you diversify. Because you suppress your ego and realize, “I don’t know what’s going to happen tomorrow. I’m not certain.” You can have probabilistic expectations, but certainty, at some point, that lack of hubris is going to come back to bite you.
So, consider diversification in order to calm your nerves and give you the capacity to weather any storm on your path to Wisdom, Wealth, and Wellness.
Have a great day.