Quote Originally Posted by christopher leigh View Post
To make this clear to anyone interested in this debate, I'll prove my point: If you invest in three companies and we'll assume for the sake of argument, they're all successful. In that case it's very unlikely they'll all succeed to the same degree. Therefore you didn't make the right decision, because if you'd invested in one(the most successful) you'd have got a bigger return than diversifying in three.
Strange way to prove a point- let's 'assume for the sake of arguement' (why not, we can make any rules up this way!) that only one is successful and two fail - if you've invested in all three you have a return, if you just invested in one there's a 2/3rds chance your investment has gone! Unless of course you have a crystal ball that you're not sharing with the rest of us!