Focus investing vs. Diversified Investing

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  • Apr 16th, 2016 8:59 am
Deal Addict
Sep 5, 2010
2347 posts

Focus investing vs. Diversified Investing

I love it when I have been practicing something already and then I read about it and realize there is even a word for it.

Have you heard of 'Focus Investing'? The idea is to focus on just one stock at a time, as opposed to 'Diversified Investing' where you invest in many different stocks across different industries to minimize your risk.

Well, I realized this is something I have been doing for months. Focus Investing that is. But to be clear, I shouldn't use the word 'investing' . It is more of a 'Trading Focus' . That is I try to buy 1 stock at a time for trading. But I do it mainly because of my limited funds and to try and cut trading fees (my TFSA account budget is around 10K at the moment) . Not to mention, by being focused on one stock at a time, it makes the job a lot easier and minimizes distractions.

Anyone here likes to trade using this approach? how does it work for you?
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Deal Addict
User avatar
May 6, 2010
3143 posts
One of the boss's accounts has exactly one stock! It's either boring or shiating brick. After watching the stock inches up/down for a few days, I ignored it altogether. A few months later, it's should I sell it for a profit or take a loss? Rinse and repeat.


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