Some opportunities are both important and risky - and they often only pay off if you fully commit. Businessman Mark Cuban has said that diversification is for people who don’t know what they’re doing. Meanwhile, famed investor Warren Buffett has emphasized the idea of putting your eggs in one basket - and watching that basket closely.

Meanwhile, many experienced people in finance and investing often say that it's worth diversifying your assets and not putting all your eggs in one basket. So what's the reality? When you look at the list of the richest people in the world, you'll see that most of them became rich by starting or investing in a single company. At one time, they bet everything on one idea, and that card proved to be a winner. For example Bill Gates and Microsoft or Mark Zuckerberg and Facebook. Even if billionaires own multiple businesses, it’s typically one that acted as the main driver of their financial success. In the world of finance, they say that selection builds wealth and diversification protects wealth. Neither is better or worse, but each affects our money differently.

When you make this selection, success in this area is your financial life or death. Such selection could be, for example, starting your own business with all your money or investing all your money in one or a few companies on the stock exchange – companies you consider the most promising. With selection, you can significantly influence your financial success – you can contact the company's management or know the ins and outs of the company you're investing in. But you can't control everything – geopolitics or an economic crisis can cause your company to fizzle out, your investments to collapse, and you're left with nothing and having to start from scratch.

Selection is about opportunities, but it's also about risk, and most people don't like to take large risks, so diversification is better for them. In the case of investments, it's buying ETFs on the broad global stock market, possibly supplemented with bonds or gold. And in the case of a career, it's, for example, a full-time job plus an additional source of income. Therefore, if you feel that financial comfort is enough for you and you don't necessarily need millions, diversification will be fine for you. However, if your goal is to build significant wealth faster, taking concentrated bets can accelerate results - but it also comes with a real risk of loss.