Core Viewpoint - The article discusses the concept of "don't invest in what you don't understand," challenging its validity and suggesting that many investors may overestimate their understanding of investments [2][4]. Group 1: Understanding Investment - The author argues that the phrase "don't invest in what you don't understand" can hinder individuals from entering the investment world, as everyone starts from a place of ignorance [4]. - It is noted that even successful investors like Warren Buffett do not apply this principle rigidly, as they focus on areas where they have sufficient knowledge and profitability [4]. - The article emphasizes that many individuals mistakenly believe they understand investments, leading to poor decision-making and financial losses [6][12]. Group 2: Survivor Bias - The author highlights the issue of survivor bias, where successful investors' stories are celebrated while failures are often ignored, leading to a skewed perception of investment success [14][16]. - The article points out that those who have failed in investments, such as cryptocurrency or business ventures, often remain silent about their losses, contributing to a misleading narrative [17]. Group 3: Risk Diversification - The author advocates for risk diversification as a valid investment strategy, suggesting that understanding the principles of asset allocation can mitigate risks even if one does not fully comprehend every asset class [19][23]. - It is mentioned that diversification can be a response to the lack of deep understanding of individual investments, allowing for a more balanced approach to risk management [23]. Group 4: Self-Assessment in Investment - The article raises the question of self-awareness among investors, suggesting that many may overestimate their abilities and should consider whether they are truly equipped to compete in crowded markets [25]. - The author reflects on the importance of recognizing one's limitations and opting for diversified strategies to achieve stable, long-term returns rather than chasing high-risk opportunities [26].