Welcome back to the show, everyone! Today we had a fantastic discussion about focus investing, a strategy that has gained significant traction in the investment world. We explored how this approach challenges conventional wisdom, particularly the principles of modern portfolio theory which often advocates for diversification across a large number of stocks.

One of the key takeaways from our conversation is the importance of thorough analysis when selecting investments. It's not enough to simply glance at numbers or rely on market trends. True focus investors, we learned, take a deep dive into understanding the businesses behind the stocks. They scrutinise the company's operations, products, management, and financial health. This business-like approach, as we discussed, is fundamental to mak ...