Why Most Diversification Is 'Deworsification’ | Charlie Munger скачать в хорошем качестве

Why Most Diversification Is 'Deworsification’ | Charlie Munger

"Diversification is a protection against ignorance. It makes very little sense for those who know what they are doing." — Charlie Munger The entire financial industry is built on a single premise: "Don't put all your eggs in one basket." They sell you mutual funds with 500 stocks to "manage risk." Charlie Munger called this madness. He argued that wide diversification is not a strategy for wealth creation; it is a strategy for guaranteed mediocrity. In this video, we break down why Munger believed that adding a 20th stock to your portfolio doesn't lower your risk—it mathematically lowers your return. This is the concept of "Diworsification": the act of diluting your best, high-conviction ideas with your tenth-best ideas just to feel safe. We explore Munger’s "Concentration Philosophy"—the radical idea that you should only own the businesses you understand deeply, and when you find a great one, you should bet heavily. We analyze the math behind why a portfolio of three wonderful businesses is actually safer than a basket of fifty average ones. In this video, you will discover: The "Know-Nothing" Investor: Why Munger admitted that diversification is fine for people who don't know how to value a business, but is a "confession of ignorance" for anyone else. The Dilution Effect: How adding more stocks to your portfolio mathematically pulls your returns down to the average, ensuring you never beat the market. The "Punch Card" Rule: Munger’s famous thought experiment: if you were only allowed 20 investment decisions in your entire life, you would never buy a mediocre company, and you would likely retire rich. Volatility vs. Risk: Why Munger didn't care if his portfolio dropped 50% in a year, and why he viewed "price fluctuation" as totally different from "losing money." SUBSCRIBE for more financial wisdom and investing documentaries Let me know in the comments: Do you agree with Munger that wide diversification is for people who don't know what they are doing? #CharlieMunger #Diworsification #PortfolioConcentration #InvestingMyths #WarrenBuffett #ModernPortfolioTheory #RiskManagement #StockMarketStrategy #ValueInvesting #FinancialEducation #WealthBuilding