The trend of running a holding company (a portfolio of businesses) is often a path to distraction and shallow expertise. The wealthiest entrepreneurs typically achieve success by focusing intensely on a single venture for an extended period, mastering its operations before considering diversification.
The pressure for omnipresence leads to diluted focus and burnout. The most successful entrepreneurs are intentionally choosing one or two channels, going all-in, and finding peace in letting other platforms go. This deep, consistent presence outpaces scattered efforts every time.
The temptation to switch to a shiny new opportunity ignores the significant head start you've built. Even if the new venture grows faster initially, you lose years of compounded knowledge and progress, leaving you behind where you would have been by sticking with it.
Ben Horowitz states a common VC mistake is over-indexing on a startup's weaknesses. The better investment is a team that is unequivocally the best at a single, critical thing. Being "pretty good" at everything is a red flag, as greatness in one area is what drives extraordinary outcomes.
The top 0.1% focus on their primary operating company as the main wealth generator. They view stocks, real estate, and index funds as tools to preserve wealth after it's been made, making it the final stage of investing, not the first.
Instead of chasing trends or pivoting every few weeks, founders should focus on a singular mission that stems from their unique expertise and conviction. This approach builds durable, meaningful companies rather than simply chasing valuations.
The dominant VC narrative demands founders focus on a single venture. However, successful entrepreneurs demonstrate that running multiple projects—a portfolio approach mirrored by VCs themselves—is a viable path, contrary to the "focus on one thing" dogma.
According to Peter Thiel, founders who boast about multiple revenue streams or distribution channels are unintentionally revealing a critical weakness. The most successful companies typically have one dominant, highly effective revenue model and one primary acquisition channel driving their growth.
True diversification doesn't come from being a generalist, but from achieving undeniable mastery in one specific domain. This deep expertise becomes your leverage—your "in"—to access rooms, build credibility, and then expand horizontally into other ventures like production, investing, and brand partnerships.
Instead of diversifying broadly, Adam Moskowitz built his cheese empire by launching adjacent businesses in 'concentric circles.' His warehouse, import company, event business, and media company all center on cheese, creating a focused, mutually reinforcing ecosystem.
The effort to consistently make small, correct short-term trades is immense and error-prone. A better strategy is focusing on finding a few exceptional businesses that compound value at high rates for years, effectively doing the hard work on your behalf.