As the name suggests, focused investing otherwise known as concentrated investing lets the investor focus on a handful of companies rather than investing in dozens of companies. In this strategy, the investors put the maximum of his corpus in the top 8-10 opportunities which have been well-researched.
In the stock market, we have a variety of investors, some are employees who save on monthly basis, some professionals who depend upon their commissions for investments, some businessmen who invest their profits and then there are some who are professional investors.
Except for the professional investors, the majority of investors as mentioned above have a mainstream line of the profession which keeps them occupied and the reason they invest in the stock market is to grow their savings. But since the majority of their time is occupied by their work, they have very little time to do their own research behind their investments and hence it is absolutely difficult for them to maintain, track and efficiently manage their huge portfolios with 20-30-40 stocks otherwise known as diversification investing.
This is where this strategy of focused investing or concentrated investing comes in to save the day by offering superior returns and the ease of tracking the portfolio with as less as 8 to 10 stocks in them with proper fund allocations.