Hi guys, love your podcast!!
I’m struggling to figure out how to get both the benefits of diversification as well as those of compounding at the same time. Diversification from what I understand is a way of lowering risk by spreading out invested money. However in my mind this seems to be in competition with the idea of compounding whereby if every dollar you had in the market were in the same well performing ETF for instance, compounding would be of huge benefit.
Can you shed light on how you balance the need for diversification vs wanting to make the most of compounding?
Cheers! Please keep making the podcast!!