Is your “diversified” portfolio actually holding you back? In this episode of the Teaminvest Wealth Builders Podcast, Kerry Fleming is joined by CEO Andrew Corman and Head of Funds Management & Education Sanjee Narendran to revisit the concept of diworsification—Warren Buffett’s term for over-diversifying to the point where you dilute your returns and cap your upside.

They unpack the gap between academic risk theory and real-world risk, explain why volatility is not the same as the risk of permanent loss, and show how traditional diversification and regulation can push investors toward mediocre outcomes. You’ll learn how many assets you can realistically understand, why high-conviction investing can be more rational than it looks, and how to strike a smarter balance between risk, focus, and long-term wealth creation.

Key Topics Covered:

• What diversification really means in academic finance vs real life
• Systemic risk vs company/industry-specific risk
• Why volatility ≠ real-world risk of loss
• How regulators and industry use “risk” and “volatility” to sell mediocrity
• The hidden cost of portfolio bloat and overlap
• Diworsification: when diversification quietly destroys your upside
• How many assets you can realistically understand and monitor
• Circle of competence and intelligent risk-taking
• Thinking in terms of “loss given default” instead of abstract probability
• Why understanding what you invest in matters more than box-ticking diversification

Timestamps (suggested):

00:00 – Introduction: diversification vs diworsification
02:00 – Academic definition of diversification and risk
07:00 – Volatility vs real-world risk (and why regulators get it wrong)
13:00 – Industry incentives and under-promising “safe” returns
18:00 – Diworsification: when diversification caps your upside
23:00 – How many assets should you really hold?
28:00 – Circle of competence and high-conviction portfolios
34:00 – Risk as “loss given default” vs volatility
39:00 – Understanding funds and products beyond the label
43:00 – Final thoughts: do your due diligence, not just “spread the risk”

Listen on:

• Apple Podcasts: https://podcasts.apple.com/us/podcast/teaminvest-wealth-builders/id1811489508
• Spotify: https://open.spotify.com/show/71dSg1DgpesFF5TcaUsM1j?si=6677e1737e7642df
• YouTube: https://www.youtube.com/@Teaminvest2007

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