Diversification Might Keep You Safe, But Concentration Makes You Legendary

If I had to distill the theme of Moonshot Minute in just three words, it would be:

Concentration Beats Diversification

This is the simple secret I used to go from a lower-middle-class immigrant kid to a net worth in the top 0.1% - 0.01%.

It’s how I found trades that turned $30,000 into $1.3 million… $100,000 into $1.1 million… and even $2,000 into more than $2.6 million.

All these trades are real. Inside of Moonshot Minute, I’ll share the details, screenshots, people, and stories behind every single one.

But before I can do that, you must understand my wealth-building philosophy because it’s not for everyone.

Diversification: A Crutch For The Weak

Diversifying your portfolio sounds logical and safe. Unfortunately, the best you can hope for is an average result. In other words, it’s mathematically unlikely for you to end up better than average.

The main reason for this is that diversification dilutes your potential. Every dollar going into a so-so investment is a dollar not going towards something handing you life-changing gains.

By diversifying, you’re betting on every horse in the race, and sure, you might win something, but you’ll never win big.

Diversification screams fear. It’s for people who can’t handle volatility, and I hate to break it to you, but volatility is the price of admission to building extraordinary wealth.

The market handsomely rewards the brave, the focused… not the ones who play it safe with a thousand tiny bets.

I discovered an AI crypto project I liked a little over a month ago. I put $30,000 into the trade and doubled my money in less than a month. I wrote about it here on December 18th, and as of today, just 12 days after that update, I’m up even more.

I’ve more than tripled my money.

I could take advantage of this trade because I had the capital to go in and make that trade without much thought.

And this example illustrates one of the worst things about diversification. You’ll never have available the capital required to take advantage of game-changing opportunities.

Opportunities like the ones I’ve shared here aren’t found in diversified portfolios. Diversification doesn’t build empires, doesn’t build legacies, doesn’t build generational wealth. At best, it might build an adequate retirement if you’ve stayed disciplined over decades and are content with an average retirement.

Concentration Makes You Legendary

Lou Simpson managed GEICO’s investment portfolio from 1979 until he retired in 2010.

From 1980 through 2004, his strategy achieved an average yearly return of more than 20% per year. During that same period, the S&P averaged around 13%. He also beat the S&P in 18 out of those 25 years.

Simpson was so good, Warren Buffet called him “a cinch to be inducted into the investment Hall of Fame” and even said Simpson’s performance was so good, it made his own performance look less impressive by comparison.

By the time Simpson retired, he was managing more than $4 billion, and here’s the kicker:

He never held more than 10-15 stocks. Even more impressive, he often held less than ten stocks.

Lou Simpson isn’t the only world-class investor who believes concentration beats diversification.

• Kristian Siem, known as “Norway’s Warren Buffet”, achieved an average yearly return of over 25% per year for 25 years by… concentrating.

• Joel Greenblatt’s fund, Gotham Capital, returned over 40% per year between 1985 and 1994 by… concentrating.

• Michael Burry made a highly concentrated - and famous - bet against the housing market before the 2008 financial crisis. The results? He earned around $700 million for his investors and $100 million for himself.

I could go on, but what’s essential for you to realize is that concentration is about playing to win and leaving a mark in your financial life so deep that it completely reshapes and rewrites the history of your entire bloodline moving forward.

It’s not a slow grind that, at best, might give you average results, but instead, it’s rocket fuel being poured all over your financial life. When you concentrate your capital in high-conviction ideas, your gains don’t just add up, they skyrocket.

When you look at the record of the legends of capitalism, historical names like Carnegie and Rockefeller, or even modern ones like Elon Musk, Jeff Bezos and Warren Buffet, it’s clear that diversification might keep you “safe” but concentration makes you legendary.

When you read through the various posts inside of Moonshot Minute, you’ll see the concentrated bets I’ve made in my own life. I’ll reveal why I’m going with each idea, how I came across it, and sometimes even introduce you to some of the people behind the trades.

You see, I’m not alone here.

I rely on an extensive network of relationships I’ve built over the last 25 years.

• One gentleman ran a billion-dollar hedge fund in Manhattan and has been featured in many well-known investing books. He’s the one that got me into a private deal I told my readers about. That one deal alone grew over 300% and had I not fumbled it, would’ve been over 1,000%. You can read the full story here.

• Another is co-founder of a business that’s been around since the 1970s and has achieved high-margin revenues of as much as $1 billion in a single year.

• One guy I talk to daily gave me a trade idea that could have turned $500,000 into more than $2 million in less than three months. I say could have because instead of listening to him, I got out too early and instead made much less. I’m writing up a Moonshot Minute post detailing the entire trade, and you’ll soon see it in your inbox.

By reading Moonshot Minute, you get to see the moonshot ideas I’m investing my own money into, and you also get the benefit of tapping into my network.

I would conservatively estimate my network alone has made me a minimum of $10 million in the last few years.

Concentration Beats Diversification

For years I worked hard, I lived below my means and dutifully put my excess cash into a 401k. I did what I was told was the right thing to do.

No matter what I did, though, I barely moved my financial needle. And while I could see my account growing, it was painfully slow.

It wasn’t until I started hanging around with the truly rich that I realized everything I thought was the “right” thing was actually hurting me.

And that’s why I decided to write this newsletter. I want to document my concentrated bets and share them with as many people as possible, hoping that someone reading this - maybe you - can break free from the rat race as I did.

I’m also writing this newsletter for my kids.

Clearly, “Donald Doge” is a pen name. I’m trying to maintain some level of anonymity for obvious reasons. It’s also why you’ll see me blur out some details in my screenshots. As the family fortune aggressively grows, I want them to decide how much or how little they’d like to keep these things private.

I believe that when I’m ready to stop working and writing this newsletter completely, the family fortune will be valued in the hundreds of millions. And my goal is to share with you how I do it.

I could easily retire and not do any work for the rest of my life but I’m not even fifty years old yet! I’d be bored out of my mind.

But more than that, I want my kids to have a documented and inside look into the thinking, mindset and philosophy that changed the financial trajectory of my family forever.

I also hope that by making this newsletter public, I can reach people like me who want to be more than just average… who want to achieve something far greater than they ever imagined possible… people who know deep down that what they’re currently doing just isn’t working and that true financial independence is somehow always out of reach…

And I hope that by reaching you, and showing you what I’ve done - and continue to do - you can do for you and your family what I did for me and mine.

So as you read each issue of Moonshot Minute, never forget:

Concentration beats diversification,

Donald Doge (Double D)