Iceland beat England yesterday to reach the quarterfinals of the 2016 UEFA European Championship. Sometimes the big guns (really, England is more of a medium gun masquerading as a big gun) lose, and sometimes the teams from countries with a population of 400,000 win.
But if you’re a fan of good soccer in general, you generally come out on top in these international competitions, regardless of which team ends up winning it all.
This is a decent metaphor for the importance of portfolio diversification. If you concentrate on one or two teams, you may have some really high highs from time to time, but more often than not you will be disappointed. But if you rely on the general power of companies to earn profits over time, you will almost always come out a winner in the long run.
Meaningful Returns 
Leave a comment