Conventional behaviour might yield average good or bad results but only the non-conventional can produce above average or below average results. What kind of investors do you want to be? Average? Or great? To succeed in any pursuit of risk, we must learn how to accept losses. More judiciously, it is to ensure more successes than failures, and to make more gains on successes than losses on failures. Just like in basketball – for every shot not taken, it’s a 100% missed.
Over-diversification of portfolio will only bring about average results at best, because you are doing what other normal people are doing. Low cost, passive investments that emulate benchmark performs are for the average. The bold and great will take risk to concentrate on certain stocks, sectors or themes based on careful risk-mitigated actions (e.g. margin of safety).
BYOPM 