Even understanding principles, implementation errors occur:
Over-Diversification Paralysis
Too many options create decision paralysis and prevent deep achievement: - Maintain core focus areas - Build related capabilities - Avoid random accumulation - Ensure time for depth - Regular portfolio pruning
Balance diversification with focus.
Correlation Blindness
Believing you're diversified while maintaining hidden correlations: - Test independence assumptions - Stress-test correlations - Build true alternatives - Monitor correlation changes - Maintain decorrelation discipline
True diversification requires vigilance.
Sequential Rather Than Parallel Building
Building portfolio elements one at a time misses compounding benefits: - Develop multiple elements simultaneously - Create reinforcing activities - Leverage time efficiently - Build momentum across domains - Capture interaction benefits
Parallel development accelerates progress.