Diworsification: When Diversification Goes Too Far – Teaminvest Wealth Builders Podcast

Teaminvest Wealth Builders

Episode Summary:
In this episode, we take a critical look at diversification—often called the cornerstone of risk management—and reveal why too much of it can actually hurt your investment returns. Host Kerry Fleming, CEO Andrew Coleman, and Head of Funds Management & Education Sanjee Narendran discuss “diworsification,” the hidden risks of portfolio bloat, and the importance of high-conviction investing for long-term wealth creation.

What You’ll Learn:

• The difference between healthy diversification and “diworsification”
• How academic definitions of risk differ from real-world investor experience
• Why too many holdings can mask risks and cap upside
• How to determine the right number of investments for your portfolio
• The importance of understanding what you own (circle of competence)
• Practical strategies for building a focused, high-conviction portfolio
• Regulatory challenges and perceptions around “high risk” funds
• Insights from Warren Buffett on portfolio construction

Key Quotes:

• “With too many assets, you limit the benefit of getting any one right.”
• “Diversification is protection against ignorance. If you know what you’re doing, diversification doesn’t make much sense.” — Warren Buffett
• “Risk only matters on the downside—as an investor, not as an academic.”

Timestamps:
00:00 – Introduction: The myth of more is better
02:06 – What is diversification?
09:35 – Academic vs. practical risk
19:00 – How portfolio bloat dilutes returns
27:30 – How many assets should you really hold?
17:52 – Diworsification and Buffett’s wisdom
20:00 – The power of focus and knowing your investments
25:20 – Practical tips for smarter portfolio construction
17:00 – Emerging Wealth Winners Conference, Melbourne 2025
30:00 – Final thoughts

Resources & Links:

• Teaminvest Membership
• Teaminvest Access Fund
• Conscious Investor Fund
• Register for the Emerging Wealth Winners Conference, Melbourne 2025

Join the Conversation:

• What’s your take on diworsification? Share your thoughts in the comments or email us at [email protected]

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About Teaminvest:
Teaminvest is an ASX-listed financial institution focused on transferring knowledge and wealth between generations. Our mission is to empower investors through education, rigorous analysis, and a supportive community.

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