Part 6/10:
He draws parallels between entrepreneurship and investing, highlighting that billionaires often start by concentrating their holdings in a few ventures they know thoroughly. Over time, as their wealth accumulates, they diversify more cautiously. Elon Musk's investment pattern exemplifies this—remaining heavily concentrated in Tesla, which the investor interprets as a sign of Musk’s confidence in his company.
This belief informs his decision to hold a significant portion of his wealth in Tesla stock, analogous to running a business himself. He admits that such concentration involves considerable risk but argues that with the right knowledge and long-term perspective, it can be highly rewarding.