Is diversification a lack of confidence or some prudence?

Sometimes I think, what's that thing about being focused for being successful? Do we really need to be single minded, ultra focused towards achieving some goal?

Is multitasking a good or a bad thing? Doesn't it divert our attention into multiple things?

When an entrepreneur works on a single project with all her energies dedicated to that project, she is said to be focused on her goal, and goal-oriented people like her are assumed to deserve their success.

Does this imply that all large business houses or conglomerates with multiple business units in several segments lack confidence in their core business activity? Why they ain't focused on a single business?

When a business has surplus funds & resources and it diversifies into a different segment, then does it imply that they can't milk the market anymore in their core segment at the same rate as they think they can do in a new segment? But if they think that return on investment (RoI) is better in the new segment then why not exit the core segment and move all the investment into the new segment instead of diversifying just some of their funds only? Isn't it always good to be focused in one direction? Why diversify!

Also, the investors who maintain or recommend a diversified asset portfolio for minimizing risk exposure, are they not confident on any single asset in their portfolio? Or are they equally confident about all the asset classes they are invested into?

In reality, there are so many uncertainties attached to every investment that no one can be completely confident of anything. Hence, if they have surplus money with them, they would always like to diversify their investment into some new asset classes. It's always better to invest in entirely different asset classes that have entirely different business risks associated with them. Thus if one of your assets is exposed to some market risks, the others are not exposed to same risks and they might be expected to do better even when the time for other asset is adverse. That's how investors minimize their exposure to risk.

So all these talks about "having self confidence to become successful" appears to be some form of gimmick to me. E.g. if you are very confident about the potential of HIVE and keep investing and piling up in your wallet without diversifying a bit, I won't term you as confident but would rather call you as over-confident.

In conclusion, going forward, I have decided to divest a part of my earnings from Hive into some other asset forms. Still, HIVE will remain my "core" holdings.

Thank you for going through my ramblings!

P.S.:
Same logic may not apply to your religion or faith. You need to remain focused somewhere 😜