Quote Originally Posted by Boy Wonder View Post
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!
I thought you didn't take financial advice from forumites? I'll assume you've changed your mind.

If you've invested in one or more companies without understanding what you're doing(gambling) then you may make gains or you may lose everything, depending on how those companies perform, and regardless of whether you invest in one or more.

Now if you know what you're doing, why invest in three companies when your projections point to greater success in one. Only in the case where your projections point to an equal success rate in several of the best companies, is there any justification in diversifying. That's hardly ever, just look at current share prices.