Wealthy + Wi$e Ep 4 | The Diversification Trap

Diversification is one of investing's most repeated mantras, but are you doing it right? In this episode of Wealthy & Wise, we sit down with Andrew Coleman from Teaminvest, David Sokulsky from Carrara Capital, and Rob Gilmore from Wealth Simplicity to cut through the theory and get practical on one of investing's most misunderstood concepts.

From Markowitz's 1950s mean-variance framework to real-world portfolio construction, the panel unpacks the difference between market risk and company-specific risk, why correlation matters more than the number of stocks you hold, and whether 20 well-chosen companies can outperform a bloated 50-stock portfolio.

They also tackle the questions investors actually wrestle with: Can you be fully diversified within Australian equities alone? When does diversification start destroying returns? And how does your personal circle of competence determine how concentrated your portfolio should be?

Plus, a viewer question on the eternal dilemma... when exactly do you pull the trigger on buying or selling a stock?

Whether you're a seasoned value investor or building your first portfolio, this episode will challenge how you think about risk.

*Partner content

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