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

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 info@tipgroup.com.au 

Subscribe & Follow: 

• Subscribe on Apple Podcasts/Spotify/Google Podcasts 
• Follow us on LinkedIn and Facebook for more investing insights 

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.

🎙️ Enjoyed this episode?

Don’t forget to subscribe, rate, and leave a review on your favourite podcast platform. It helps us grow and reach more Wealth Builders like you.

📩 Join the conversation
Have thoughts or questions? Email us at marketing@tipgroup.com.au or connect with us on LinkedIn

🔗 Support the show
Love what we’re doing? Please show your love by sharing this episode with a friend.