--- title: "Meaning & Key Takeaway of: If you focus on diversification instead…" description: "\"“If you focus on diversification instead of single-minded pursuit of the very few companies that can become overwhelmingly valuable, you’ll miss those ..." image: "https://sms4smile.com/quotes/i/1bd/peter-thiel-1311_customer_if-you-focus-on-diversification-instead_2023152.png" --- # If you focus on diversification instead of single-minded… ![“If you focus on diversification instead of single-minded pursuit of the very few companies that can become overwhelmingly valuable, you’ll miss those rare companies in the first place.” quote by Peter Thiel](https://sms4smile.com/quotes/i/1bd/peter-thiel-1311_customer_if-you-focus-on-diversification-instead_2023152.png) [Download](https://sms4smile.com/quotes/i/1bd/peter-thiel-1311_customer_if-you-focus-on-diversification-instead_2023152.png) [Open image](https://sms4smile.com/quotes/i/1bd/peter-thiel-1311_customer_if-you-focus-on-diversification-instead_2023152.png) > ““If you focus on diversification instead of single-minded pursuit of the very few companies that can become overwhelmingly valuable, you’ll miss those rare companies in the first place.”” [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Diversification can dilute focus, causing missed opportunities in breakthrough companies. **In simple terms:** Focusing on many firms can hide the rare, valuable ones. Key Takeaway Prioritize depth over breadth. Themes investment focus innovation risk strategy Mood analytical strategic Type business investment When to use this quote - startup scouting - portfolio management - long‑term planning - resource allocation Key Concepts venture capital opportunity cost market concentration Questions to Reflect On - What balance yields optimal returns? - How to identify truly transformative firms? A Different Perspective Over‑focus may cause blind spots to other promising sectors. ★ ★ ★ ★ ★ No ratings yet [Customer](https://sms4smile.com/quotes/about/customer/) [Diversification](https://sms4smile.com/quotes/about/diversification/) [Diversification Instead](https://sms4smile.com/quotes/about/diversification-instead-3674337/) [First place](https://sms4smile.com/quotes/about/first-place/) [Focus Diversification](https://sms4smile.com/quotes/about/focus-diversification-3674338/) [Pursuit Companies](https://sms4smile.com/quotes/about/pursuit-companies-3674339/) [Rare Companies](https://sms4smile.com/quotes/about/rare-companies-1691128/) ## Related quotes > [Its pretty rare for companies to have a snooping policy, although it is getting more common.](https://sms4smile.com/quotes/david-r-ellis/its-pretty-rare-for-companies-to-have-a-snooping-policy-although-it/) [David R. Ellis](https://sms4smile.com/quotes/author/david-r-ellis/) > [Diversification is an established tenet of conservative investment.](https://sms4smile.com/quotes/benjamin-graham/diversification-is-an-established-tenet-of-conservative-investment/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [Our policy is to concentrate holdings. We try to avoid buying a little of this or that when we are only lukewarm about the…](https://sms4smile.com/quotes/warren-buffett/our-policy-is-to-concentrate-holdings-we-try-to-avoid-buying-a-little/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The Berkshire-style investors tend to be less diversified than other people. The academics have done a terrible disservice to intelligent investors by glorifying the…](https://sms4smile.com/quotes/charlie-munger/the-berkshire-style-investors-tend-to-be-less-diversified-than-other/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [I think we are seeing a radical shift in the business in general. The studios are making much more of the real big extravaganzas…](https://sms4smile.com/quotes/barry-levinson/i-think-we-are-seeing-a-radical-shift-in-the-business-in-general-the/) [Barry Levinson](https://sms4smile.com/quotes/author/barry-levinson/) > [“I like "multi-"...multiplicity, multicultural, multiplication etc. Any contribution to diversification and value augmentation is achievement.”](https://sms4smile.com/quotes/rossana-condoleo/i-like-multi-multiplicity-multicultural-multiplication-etc-any/) [Rossana Condoleo](https://sms4smile.com/quotes/author/rossana-condoleo/) > [“Diversification is a component and in some cases a very good initiation of value creation.”](https://sms4smile.com/quotes/pearl-zhu/diversification-is-a-component-and-in-some-cases-a-very-good/) [Pearl Zhu](https://sms4smile.com/quotes/author/pearl-zhu/) > [As a result of overdiversification, their (active managers) returns get watered down. Diversification covers up ignorance. Active managers haven't done enough research into any…](https://sms4smile.com/quotes/bill-ackman/as-a-result-of-overdiversification-their-active-managers-returns-get/) [Bill Ackman](https://sms4smile.com/quotes/author/bill-ackman/) > [The idea of excessive diversification is madness.](https://sms4smile.com/quotes/charlie-munger/the-idea-of-excessive-diversification-is-madness/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [Risk comes from not knowing what you are doing so wide diversification is only required when investors are ignorant. 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Active trading, attempts to "time" market movements, inadequate…](https://sms4smile.com/quotes/warren-buffett/investors-of-course-can-by-their-own-behavior-make-stock-ownership/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [We believe that almost all really good investment records will involve relatively little diversification. The basic idea that it was hard to find good…](https://sms4smile.com/quotes/charlie-munger/we-believe-that-almost-all-really-good-investment-records-will/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [“How do you get past this?” Diversification is everything. You get past “this” by having lots of “that”s.”](https://sms4smile.com/quotes/james-altucher/how-do-you-get-past-this-diversification-is-everything-you-get-past/) [James Altucher](https://sms4smile.com/quotes/author/james-altucher/) ## More by Peter Thiel > [People don't want to believe that technology is broken. 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