Don Quixote was the greatest. How do you know?

That sentence can be interpreted like that, but since assets didn't exist yet at the time, maybe it was something else. I think it was, don't overwork yourself today because there's more tomorrow. :)

I think you are right, but if you have all your eggs in one basket you have to be very sure of your analysis of the asset in question, so your knowledge about the asset has to be quite extensive and you have studied it in depth, regardless of the asset that we are dealing with

One of the best quotes from a great work of literature. The only thing to add to your comments and the wise replies is that simply having the ability to swerve (mental, emotional, and financial) from a path that's not working is something I wish I'd cultivated earlier in my life, and I've seen plenty of others who would have benefitted from it.

I think Don Quixote is the best. He opened my mind to different perspective view. Where one sees nothing someone else sees perfections. And while one lives amond beautiful women another one doesn't see this beauty at all, etc etc etc

The same with your quote. He accustomed to diversify because most of assets were rigged from inside. With Bitcoin we have another situation however most of people don't trust it because of past bad experience

Cervantes did die poor and in debt, and previously he was on prison and lost an arm in combat.

Anyway, you can diversify: buy all kind of things with Bitcoin once you have enough. Except crypto and other scams, of course. Because you don't want to diversify on scams. No matter how many scams you can buy, they are all scams.

100% agree with your interpretation Ruby.

Furthermore, putting all your eggs in one basket need not be limited to investments/wealth. Haven’t read his work but I also read it that you should neither attach happiness, livelihoods or enjoyment of possessions to a single short-term outcome. That is also a way of putting all your eggs in one basket.

Here’s my 2 sats:

It doesn't make sense, IMHO, to "diversify" with <€10k, shit, even <€100k.

That's not how investing / speculating in pursuit of wealth works.

People are playing the rich man's game while poor, and somehow think that they've absolutely nailed it three- to five decades down the road because they've finally acquired a stake worth multiple hundred K's through faithfully "diversifying" their money; but what's that stack going to actually buy you then?!

People who "diversify" with the little money they have shouldn't be in the game in the first place- what's buying the winners and the losers going to get ya anyways (with the already small amount of money you own?? 6% on what? €5000? Gonna be a long way to that juicy goal of a million euros- and that's the positive scenario.

It seems to me that people are already happy off-setting the yearly inflation with their "investments"...

Yea! I get to be the dissenting voice.

What you're observing is the right tail of the distribution. This is called "survivor bias".

Putting all your eggs in one basket is a high variance strategy, so both tails of the distribution are over represented by it: i.e. if you look at the people who lost the most money, they too put all their eggs in one basket.

His asset was his physical body and not dying on a given adventure was his diversification.

100% correct.

I believe that a poor man only has one chance to become rich and that is put all his eggs in one basket, the most riskiest and rewarding. If he gets lucky, he becomes wealthy, else he is already a poor man.

I agree. You should do your research and with a high conviction go into just a handful of assets. Diversification just for the sake of diversification makes no sense.

I agree with the principle but feel that it’s easily said than done. Applying it successfully means that you got to manoeuvre your life in such a way that you get intimately acquainted with one asset class. Warren Buffett bought his first stock when he was 11. Robert Kiyosaki made a killing with the real estate market. Honestly, money doesn’t hold that much of an appeal for me. I spent my 20s n 30s travelling as much as I could n never regret it.

The subtext in your question is whether one should go all in on Bitcoin. Again I have my doubts honestly. It’s trustless n permissionless, but I feel that there are larger forces beyond my control. What if MircoStrategy goes all out to acquire a substantial percentage of BTC? What if more nations make BTC their national currency? What if the ETFs grow exponentially n suck up all the BTC like a black hole? I don’t fancy submitting to just one thing because it implies a loss of control for me. I’m blessed that I trust my National government enough to invest in its bonds and T-bills haha. Diversification is for me the pleb Sensei!