Don’t diversify. Prioritise.
There is a growing weariness with hearing about "diversification" as the ultimate investment mantra. The focus should not be on diversification, but on performance. To achieve performance, choices need to be made.
For example, families do not invest in Nikkei ETFs simply because they lack sufficient Japanese exposure. Instead, they choose to invest in a Tokyo-based medtech startup because it requires funding to secure its international patent and scale up production. There is a belief that this startup can have a meaningful impact and potentially become a unicorn. The investment made can truly make all the difference.
Families prioritize choosing investments over diversifying. They accept the risk of being wrong, and it is through this approach that the best returns are achieved.