Di-worse-ification
The key to balancing risk and return comes from a modern reading of a telecom scientist’s research. Here’s what to do.
Diversification divides investors. Some say you should spread your bets as wide as possible; others say you should only buy your best ideas. Who's right? On the one hand, concentration adds risk. On the other, diversification—or diworseification, as Warren Buffett calls it—cuts return. The optimal balance between the two lies on t…