Two different strategies for investing are concentration vs diversification. Diversification is when an investor invests in many different companies at a time. This helps prevent losses.
Concentration is when you make a small number of positions taking on a greater deal of risk. Warren Buffet said a quote to help understand why he prefers a concentration approach.
When Warren Buffett was first starting out, he had more ideas than capital to invest in the ideas. As Warren Buffett got older, he has more capital than ideas.
As you get older as an investor, you gain more experience and hopefully more capital which limits your risk taking.
This is the argument for concentration vs diversification
Nathaniel Thiele 
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