Is Diversification a Trap? The Core-Satellite Strategy That Unmasks Fake Diversification
You think holding a dozen stocks diversifies risk—but you're just sprinkling money into highly overlapping assets. This article exposes three traps of fake diversification: dilution from too many positions, hidden overlap, and paralysis in crashes. The rich don't win by diversifying—they win by cognition, resilience, and capital reserves. The Core-Satellite strategy lets ordinary investors combine a shield of safety with a spear of explosive upside.