Mental Model: The Law of Diminishing Returns

When we put effort into something, we expect to get the same amount of output, right?  This can often be the case, but sometimes our rewards are not proportional to the risks we take.  For example, diversification only makes sense to a certain point before it "waters down" our overall returns.  The Law of Diminishing Returns reminds us that we should be mindful of the inflection points in our investments and in our lives as well. --- [email protected] Instagram: stockstories1