Most investors are playing not to lose. We play to win — by betting big on the best.
One of the most powerful ways to do that? A concentrated portfolio.
That may sound counterintuitive to everything Wall Street has preached for decades. You’ve probably heard phrases like, “Don’t put all your eggs in one basket.”
But when you look at the best-performing investors in history — from Warren Buffett to Stanley Druckenmiller — you see the same common thread: they don’t diversify for the sake of diversification.
They concentrate their capital into their best ideas.
Case in point: Sir Christopher Hohn’s hedge fund, The Children's Investment Fund (TCI), is up 21% this year.
That’s more than triple the return of the S&P 500 over the same period.
And how did he do it?
By focusing on a few high-conviction positions like GE Aerospace, Microsoft, and Visa.
Instead of owning dozens or hundreds of stocks like a typical mutual fund, TCI puts serious capital behind a small number of world-class businesses.
The best investors don’t spread their bets —
They double down on their highest-conviction ideas.
GE Aerospace alone, a company that makes engines that power global travel and defense, is up 47% this year.
Microsoft continues to dominate cloud and AI.
And Visa, which connects trillions in global payments, just keeps growing.
Focus Beats Diversification Every Time
This kind of focused investing is not about gambling.
It’s about doing your homework, understanding the businesses you own, and having the conviction to hold them through thick and thin. This is how wealth is built over time.
Real Talk: Most portfolios are over-diversified to the point of mediocrity.
Owning 50 different stocks might make you feel safe, but it can water down your returns and make it hard to beat the market.
Instead, when you own a handful of high-quality businesses that you understand well, you give your portfolio a fighting chance to outperform.
At American Prosperity, we believe in putting capital behind companies that are built to last — businesses with pricing power, strong management, competitive advantages, and long runways for growth.
A concentrated portfolio lets us do just that. We’re not chasing trends or trying to be clever. We’re looking to own compounding machines.
And when you get that right, you don’t need dozens of positions. Just a few great ones can change your financial future.
Chris Hohn gets it. Warren Buffett gets it. And we do too.
Because when you invest like an owner — not a speculator — you don’t need a boatload of bets. You just need the right ones.
That’s the power of a concentrated portfolio. And it’s a key pillar of the American Prosperity strategy.
Stay focused. Stay bullish. And keep owning the best.
That’s how real wealth is built.
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Regards,
Charles Mizrahi
Prosperity Insider
