A Quote by Warren Buffett

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

Warren Buffett

Quote Topics

Diversification Doing Investors Only Required Understand Wide

Quote Author

Warren Buffett
American - Businessman
Born: August 30, 1930

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

The idea of excessive diversification is madness. Wide diversification, which necessarily includes investment in mediocre businesses, only guarantees ordinary results.

Charlie Munger

For investors who do want to speculate in high-yield bonds, one alternative may be a junk bond mutual fund, which can offer investors the relative safety of diversification.

Alex Berenson

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

As in most subjects relating to money management, there's a wide diversity of opinion on portfolio concentration versus diversification.

Whitney Tilson

Understand that VCs are simply a sophisticated form of financial investors who, in turn, need to satisfy their own investors.

Steve Blank

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

It's important to Russia to be able to attract capital and to attract technology to develop their oil fields, their oil and gas fields, many of which suffer from lack of access to the very best technologies. And it's also important, and this has been the US government's view to have diversification of supply, diversification of supply roots and, of course, diversification in terms of alternative energy.

Condoleezza Rice

I don't really understand why everybody doesn't want to direct. It's an absolutely fascinating combination of skills required and puzzles set on every possible level, emotional and practical and technical. It calls upon such a wide variety of skills. I find it completely absorbing.

Hugh Laurie

In a large congregation, while there is a wide diversification of interest, it is also true that there are only a few basic human problems. It must also be taken into consideration that people are people regardless of who they are or what their backgrounds may be. There are certain deep universal appeals to human interest and to these human nature always responds.

Norman Vincent Peale

I believe that good investors are successful not because of their IQ, but because they have an investing discipline. But, what is more disciplined than a machine? A well-researched machine can make many average investors redundant, leaving behind only the really good human investors with exceptional intuition and skill.

Stanley Druckenmiller

Understand that sexuality is as wide as the sea. Understand that your morality is not law. Understand that we are you. Understand that if we decide to have sex whether safe, safer, or unsafe, it is our decision and you have no rights in our lovemaking.

Derek Jarman

Directing is the best job going. I don't understand why everybody doesn't want to direct. It's an absolutely fascinating combination of skills required and puzzles set on every level - emotional and practical and technical. It calls up on such a wide variety of skills. I find it completely absorbing. I just love the whole process.

Hugh Laurie

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.