Keep it simple, stupid

A recent article making the rounds on social media caught my attention for all the right reasons. It meticulously explained how many stocks an investor should own, discussing diversification strategies, sector allocation, and the mathematics of portfolio risk reduction. The analysis was thorough, well-researched, and would make any finance professor proud. Yet reading it made me deeply uncomfortable, not because of any flaws in the reasoning, but because of what it represents. The piece exemplifies a curious phenomenon that has emerged in the investment world over the past decade. Individual investors with day jobs, families, and lives to live have begun adopting the analytical frameworks and portfolio construction methods of professional fund managers. This trend reached its peak during the recent bull market when retail investors began discussing concepts like "factor investing," "style boxes," and "correlation matrices" with the same earnestness once reserved for professionals managing thousands of crores. Suggested read: Others’ mistakes But here's the thing: most of th