It’s amazing how often we are tempted to hold on to over-concentrated and risky positions given that:
1. There is an overwhelming body of research showing we take losses to heart much more fully than we appreciate wins,
2. The likelihood of a win for a particular stock is small, and
3. We don’t need huge wins in the first place to steward our wealth well. We simply need to avoid mistakes.
Diversification is the only free lunch.
Meaningful Returns 