Risk and reward are linked. How much you risk is proportional to how much you will be rewarded. If you want to take small risks then you will have to take many of them. Otherwise you can take one giant risk. When it comes down to taking one giant risk and putting all your eggs in one basket you better make sure its the right basket. There is no one right or one wrong way. There are many ways to lose and win. When it comes to investing Warren Buffet has proved that taking giant positions on wonderful companies pays off a handsome reward.