When it comes to diversification, there are two opposite camps. One is the academic/Ray Dalio, that praise diversification across asset classes and what not. On the other hand we have Charlie Munger that says diversification is for idiots.

My conclusion is that you have to see what is best for you personally when it comes to diversification.

In that line, I explain Dalio's holy grail diversification strategy but also discuss Munger's concentration strategy. I really think both hold, so it boils down to you.

However, something that is often not discussed when it comes to diversification are the factors of time and income. Many see diversification as something that has to be achieved immediately while I feel you can also do it over a decade or two. Plus, your portfolio is strongly correlated to your future income too, so that is another factor that impacts your personal diversification strategy and possible preferences. Enjoy.

Diversification Explained + Two Diversification Tips