Many people pursue diversification to reduce risk, but Charlie Munger's logic is quite the opposite. He believes that true wealth accumulation doesn't require a bunch of stocks. Concentrating investments in a few excellent companies, deeply understanding their business models and competitiveness, is actually safer than spreading funds everywhere. This approach requires stronger selection ability and cognitive depth—you must truly understand these companies rather than blindly following trends. Less is more, and this principle also applies to crypto asset allocation. Select a few solid projects with strong fundamentals, rather than chasing all the hot topics.