Diversification is a sentence that keeps getting shorter. Most investors don't need thirty names — they need a handful they actually understand, and a clear view of where the overlaps hide.
Concentration vs. conviction
Concentration isn't the enemy. Unobserved concentration is. The difference is whether your book's top five positions are a considered expression of conviction, or the accidental output of six separate accounts drifting in the same direction.
The question isn't how many names you hold. It's whether you know, right now, what your top five are expressing.
