Most investors spread risk across many stocks, ETFs and funds. That brings peace of mind — but it also caps upside. Concentrated investing goes the other way: fewer positions, deep research and high conviction in the choices you make.
My strategy at Rygaard is even more focused: typically one primary stock at a time. Not because it is easy or safe, but because I believe real outsized returns often come from understanding one business extremely well — not from owning 30 half-understood ideas.
Diversification vs. conviction
Classic diversification reduces company-specific risk. That makes sense for many people. But when you diversify aggressively, you also dilute your best ideas. You end up owning the market — minus a small fee.
Concentrated investing accepts more company-specific risk in exchange for clarity. You must be able to explain why this stock deserves a large share of your capital, what would have to go wrong before you sell, and how you could be mistaken.
What it takes in practice
It takes time for research, patience when the price swings, and honesty about your mistakes. That is why I share my track record openly since 2020 — good years and bad. Transparency is part of the strategy.
Concentrated investing is not for everyone. Only use capital you can afford to lose, and always make your own decisions. What I share is my personal analysis — not professional investment advice.