Diversification is For Fools

Ever heard of the saying " A Jack of all trades a Master of None" same case applies here. Most successful people have one thing they do well and not many trades or jobs. Chances of mastering one craft and squeezing all the "juice from the fruit" are higher than having many diversified roles or jobs and not mastering any.

Most successful people and companies are known for one thing. And later on, add value to their craft or diversify within the craft. A great example is Safaricom, a mobile carrier that worked on offering the best service early on and due to their better services had an early edge in market share. Later on, they diversified within their niche through products such as Mpesa, Skiza, and many more.

According to Steve Ballmer, former C.E.O of Microsoft, businesses, and artists be it music, art, or any form of entertainment, are one or two trick phenomena. Most successful people and businesses are known for one or two pieces of work. Take A music artist, they release many songs and only a few really make waves for the lucky ones.

Michael Jordan was a master in his craft. He lived and mastered the art of basketball for a long time and when it came to starting a brand, he basically put his eggs in one basket, the Jordan shoe brand with Nike.

Renowned investors and businessman Mark Cuban once said “You can’t diversify enough to know what you are doing”, Warren buffet was quoted “Diversification is for those who don’t know and understand what they are doing” and his business partner Charlie Munger added, “an idiot can diversify their portfolio.” What they preach in return is understanding and researching one particular field that you become well versed in and in return, you reduce most mistakes in that field.

Almost all successful people are related to one or two tricks.

It's easier to be successful in one thing than many.

Food for Thought

This article is not for the well-established persons and businesses in their craft but mostly for beginners and startups. When already at a pinnacle or successful point it's highly advisable to start diversification of your money into related fields or other fields the individual or business is well vast in or willing to learn in.