Wide diversification is only required when investors do not understand what they are doing.— Warren Buffett
Glamorous Diversification quotations
Mutual funds have historically offered safety and diversification.
And they spare you the responsibility of picking individual stocks.
The net effect of increasing scale, centralization of capital, vertical integration and diversification within the corporate form of enterprise has been to replace the 'invisible hand' of the market by the 'visible hand' of the managers.
I don't think that a mutual fund that invests exclusively in biotech start-ups or invests exclusively in companies in Thailand offers any great safety or diversification.
Diversification is a protection against ignorance.
It makes very little sense for those who know what they're doing.
If you have trouble imagining a 20% loss in the stock market, you shouldn't be in stocks.
In choosing a portfolio, investors should seek broad diversification, Further, they should understand that equities--and corporate bonds also--involve risk; that markets inevitably fluctuate; and their portfolio should be such that they are willing to ride out the bad as well as the good times.
Diversification is something that stock brokers came up with to protect themselves, so they wouldn't get sued for making bad investment choices for clients. Henry Ford never diversified, Bill Gates didn't diversify. The way to get rich is to put your eggs in one basket, but watch that basket very carefully. And make sure you have the right basket.
Over-diversification is a hedge for ignorance.
It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.
As a consequence, geneticists described evolution simply as a change in gene frequencies in populations, totally ignoring the fact that evolution consists of the two simultaneous but quite separate phenomena of adaptation and diversification.
Here is part of the tradeoff with diversification.
You must be diversified enough to survive bad times or bad luck so that skill and good process can have the chance to pay off over the long term.
Know what you own, and know why you own it.
If you want to make a lot of money, resist diversification.
Diversification is an established tenet of conservative investment.
Risk comes from not knowing what you are doing so wide diversification is only required when investors are ignorant. You only have to do a very few things in your life so long as you don't do too many things wrong.
There is a close logical connection between the concept of a safety margin and the principle of diversification.
Diversification may preserve wealth, but concentration builds wealth.
We can no longer let the threat of an early frost send a chill of fear throughout a large portion of our workforce. Diversification is the only answer.
The starting point for energy security today as it has always been is diversification of supplies and sources.
The development of our human resources is an area in which we need to do well as it is decisive in determining the success of our diversification programme.
Nothing's dangerous if you know what you're doing.
The diversification of the people's demand could not be followed by the state apparatus.
The best argument for mutual funds is that they offer safety and diversification. But they don't necessarily offer safety and diversification.
Diversification and globalization are the keys to the future.
Early Chinese thinkers had taken variety at face value.
They had favored diversification and collected anomalies instead of trying to explain them away.
We need to diversify our economy, and the energy industry would be a great place to begin that diversification.
The idea of excessive diversification is madness.
Saying that financial literacy means diversification is just another example of the fox teaching the chickens.
Diversification is a surrogate - and a damn poor surrogate - for knowledge, elements of control, and priceconsciousness.
The idea of excessive diversification is madness.
Wide diversification, which necessarily includes investment in mediocre businesses, only guarantees ordinary results.
We say we are trying to buy into businesses with excellent economics, run by honest and able people at a decent price. We buy very few securities, so we look at it as "focused" investing.
What went wrong is we had tremendous concentration in the sense we put a lot of our money to work against U.S. real estate. We got here by lending money, and putting money to work in the U.S. real estate market, in a size that was probably larger than what we ought to have done on a diversification basis.
We live in a very risky world and investors should not get "carried away" with excessive allocations to equities, or for that matter, real estate. As always asset allocation and low cost and broad diversification will be essential in earning one's fair share of whatever returns our financial markets are generous enough to bestow upon us.
The three principal trends affecting how we do business in the newspaper production industry might best come under the headings: automation, diversification, distributed print.