One reason financial advisers recommend diversification is that they cannot find great companies. They do not have control, and most don’t know how to run a business. They are just employees, not entrepreneurs.
Let’s take for example Warren Buffett says, “Diversification is a protection against ignorance. It makes very little sense for those who know what they are doing”.
I believe that when many recommend diversification, it’s simply a protection against their ignorance; as said, they do not have control, and most of them don’t know how to run a business, and I suspect Buffett is saying that its below-average financial advice from below-average advisors for below-average investors.
The financial experts advise people to live below their means and diversify. To many people this sounds like a smart advice. The problem with following this advice is that you wind up average because it is average advice. It is not a bad advice. It’s just average financial advice. Besides, who wants to live below their means? No one, but the advice we get, is what makes us live the lives we are experiencing right now. You become the advice you accept, that’s the fact.
Don’t live below your means, focus on your business, expand your means, expand your income, expand yourself, expand your business or businesses, expand your sources of income and become an entrepreneur.