We are halfway through my Ten Growth Principles. If you have followed over the past month, you think of money as energy, understand growth is a function of scale, invest in assets that make money while you sleep, utilize the 50/40/10 Rule to accelerate growth, and fish in a bigger pond.
Growth principle #6 is to employ the diversify or focus strategy – it is your choice. Simply put, I have observed successful entrepreneurs, businesses, and investors following one of two meta strategies, focusing on one industry, innovation, company, or class of investment, or diversifying by meeting the needs of different clients and industries. They both work, but consciously choosing increases your probability of success.
Concept:
If you want to be a millionaire, then I recommend a diversify strategy. If you want to be a billionaire, focus on one area.
Diversification improves the probability of long-term success while reducing risk and volatility. That is why diversification is a good retirement investment strategy.
Focusing on one thing – ideas, business, or market – has the potential to achieve great returns. Those gains come from unique insight gained by focusing your resources and attention in the same area for an extended period.
Reflection:
Do you want to employ a millionaire or billionaire strategy?
Action Step:
Identify the one focus area where you would be willing to invest 10 to 20 years of your life.
