Putting all your eggs in one basket; looking for a ‘guaranteed’ outcome

In life, it’s often best to diversify: have many interests, try many things, keep busy.

In financial markets, however, it’s the opposite.

There’s often a theme, or a trade, which I have extremely high conviction in.

I’ve always found it’s best to put all my eggs in this one basket.

And then watch the basket very carefully.

Adding other positions would end up destroying capital, or resulting in mediocre performance.

Outsized gains come from having high conviction on a single idea, and then executing on this idea in the best way possible.

There’s no need for Plan B as it distracts you from Plan A.