Originally Posted by
BlackPeter
Sure - some people play roulette by putting all their chips onto one number and some people make big money by putting all eggs into one investment basket. Some (actually quite a number of) people survive as well by driving a car without buckling up!
The story however is not complete as long as you don't talk as well about all the people who put all their money into one basket and lost ... and the people who just died because they didn't buckle up. Nobody sings about them.
Nobody has all information about one company and its future - i.e. making money by putting all eggs into one basket is not clever, it is just lucky.
The point of diversification is not to get quick rich ... but it is to make money without taking undue risks, and to still have some money left if one of your (skillfully chosen) investments go pear shaped due to unforeseen circumstances ....