Concentration is Key for the Active Investor
"It is important to note that mispriced investments will happen more often that once or twice a year as a whole, but the only mispriced investment that is important to you is one that falls within an area in which you are very competent. The smaller the area in which you apply your time and effort to being competent, the more likely is that you will genuinely spot the opportunities. If you try to be competent in all areas and you will never be smart enough to find these investment opportunities."
"It is important to note that mispriced investments will happen more often that once or twice a year as a whole, but the only mispriced investment that is important to you is one that falls within an area in which you are very competent. The smaller the area in which you apply your time and effort to being competent, the more likely is that you will genuinely spot the opportunities. If you try to be competent in all areas and you will never be smart enough to find these investment opportunities."
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