Diversification Quotes

• Diversification is a protection against ignorance. It makes very little sense for those who know what they're doing.

  Warren Buffett

  Ignorance, Littles, Investing

  47 Copy quote

• Diversification may preserve wealth, but concentration builds wealth.

  Warren Buffett

  Concentration Of Wealth, Investing, May

  28 Copy quote

• If you invest and don't diversify, you're literally throwing out money. People don't realize that diversification is beneficial even if it reduces your return. Why? Because it reduces your risk even more. Therefore, if you diversify and then use margin to increase your leverage to a risk level equivalent to that of a nondiversified position, your return will probably be greater.

  Jeff Yass

  People, Risk, Use

  38 Copy quote

• 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.

  Joel Greenblatt

  Skills, Long, Luck

  33 Copy quote

• Diversification is an established tenet of conservative investment.

  Benjamin Graham

  Investing, Conservative, Investment

  29 Copy quote

• Diversification and globalization are the keys to the future.

  Fujio Mitarai

  Keys, Globalization

  16 Copy quote

• Wide diversification is only required when investors do not understand what they are doing.

  Warren Buffett

  Success, Business, Intelligent

  61 Copy quote

• 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.

  Robert Kiyosaki

  Money, Greatest Wealth, Generations

  33 Copy quote

• Know what you own, and know why you own it.

  Peter Lynch

  Money, Intelligent, Investing

  34 Copy quote

• Mutual funds have historically offered safety and diversification. And they spare you the responsibility of picking individual stocks.

  Ron Chernow

  Responsibility, Safety, Mutual Fund

  58 Copy quote

• There is a close logical connection between the concept of a safety margin and the principle of diversification.

  Benjamin Graham

  Safety, Investing, Principles

  24 Copy quote

• I believe in diversification of income, because you never know what will happen. I'm a slightly paranoid person who thinks things could be ruined at any time.

  Eugene Mirman

  Believe, Thinking, Income

  5 Copy quote

• 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.

  Harry Markowitz

  Risk, Portfolios, Good Times

  39 Copy quote

• How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.

  Robert G. Allen

  Money, Investing Your Time, Saving

  Robert G. Allen (2006). “Creating Wealth: Retire in Ten Years Using Allen's Seven Principles of Wealth”, p.5, Simon and Schuster

  63 Copy quote

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• Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.

  Paul Samuelson

  Money, Vegas, Saving

  "Paul Samuelson's Words of Wisdom" by Larry Swedroe, www.cbsnews.com. December 17, 2009.

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• As a result of overdiversification, their (active managers) returns get watered down. Diversification covers up ignorance. Active managers haven't done enough research into any of their companies. If managers have 200 positions, do you think they know what's going on at any one of those companies at this moment?

  Bill Ackman

  Ignorance, Thinking, Cover Ups

  7 Copy quote

• 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.

  Warren Buffett

  Knowing, Long, Risk

  27 Copy quote

• Diversification is protection against ignorance. It makes little sense if you know what you are doing.

  Warren Buffett

  Life, Ignorance, Investing

  7 Copy quote

• The idea of excessive diversification is madness.

  Charlie Munger

  Ideas, Madness

  "Buffett's Wit and Wisdom". www.fool.com. May 3, 2004.

  10 Copy quote

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• Diversification is a surrogate - and a damn poor surrogate - for knowledge, elements of control, and priceconsciousness.

  Martin J. Whitman

  Investing, Elements, Poor

  8 Copy quote

• 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.

  Alan Autry

  Frost, Answers, Chill

  "Biography/ Personal Quotes". www.imdb.com.

  23 Copy quote

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• 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.

  Jim Rogers

  Eggs, Choices, Watches

  "Jim Rogers: Diversification Is A Scam" by John Carney, www.businessinsider.com. April 16, 2009.

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• In my 45-year career as an investment counselor, humility did show me the need for worldwide diversification to reduce risk. That career did help me to become more and more humble because statistics showed that when I advised a client to buy one stock to replace another, about one-third of the time the client would have done better to ignore my advice. In other endeavors, humility about how little I know has encouraged me to listen more carefully and more wisely.

  John Templeton

  Humble, Optimistic, Humility

  "Sir John Templeton: Mixing Science, Religion, and Humility" by T George Harris, sirjohntempleton.org. September 01, 2001.

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• If you want to make a lot of money, resist diversification.

  Jim Rogers

  Want, Lots Of Money, Ifs

  Jim Rogers (2013). “Street Smarts: Adventures on the Road and in the Markets”, p.61, Crown Business

  31 Copy quote

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• The Berkshire-style investors tend to be less diversified than other people. The academics have done a terrible disservice to intelligent investors by glorifying the idea of diversification. Because I just think the whole concept is literally almost insane. It emphasizes feeling good about not having your investment results depart very much from average investment results. But why would you get on the bandwagon like that if somebody didn't make you with a whip and a gun?

  Charlie Munger

  Thinking, Gun, Intelligent

  9 Copy quote