“Well, I know that people are taught to diversify. But diversification is just something that brokers came up with, so they don’t get sued. If you want to get rich… you have to concentrate and focus.” – Jim Rogers

I agree 100% with Jim, but when it comes to money management, most consumers don’t understand what Jim is referring to so I want to take a minute in this article to clarify a few things:

1. Why most people say they are “diversifying” but in reality don’t have the ability to do so and have “all their eggs” in one basket; and
2.  The difference between investing and money management.