Warren Buffett Quotes

It is the part of the wise man ... not even to venture all his eggs in one basket.

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

Risk can be greatly reduced by concentrating on only a few holdings.

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?

Always keep your portfolio and your risk at your own individual comfortable sleeping point.

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

There's a tendency to look at investments in isolation. Investors focus on the risk of individual securities.

I'm not a money manager, but I can tell you what the conventional wisdom is. The younger you are, the more risk you can take on.

Investors should invest on what they know. The biggest mistake is to invest on what they don't know.

The last thing you want to do, unless it's a very unusual situation, is to invest money.

The beauty of diversification is it's about as close as you can get to a free lunch in investing.

Investing is a business where you can look very silly for a long period of time before you are proven right.

Investors don't like uncertainty.

My view is that one should diversify broadly across different fund investments. However, it's tough for investors to try to pick the appropriate risk level that they should manage their funds at. Having a personal adviser would be helpful.

If the investor doesn't have enough time and skill to investigate individual stocks or enough money to diversify a portfolio, the right thing to do is to invest in exchange-traded funds that give you exposure to asset classes. It does make sense for the individual investor to think in terms of holding individual asset classes.

Children should be taught in school that you should have all kinds of asset classes in your portfolio. They should be taught what those asset classes are, and their advantages and disadvantages.

Investing is not nearly as difficult as it looks. Successful investing involves doing a few things right and avoiding serious mistakes.

Well, there's always risk in long-term investment.

I seek individual investments that will allow me to target total portfolio returns of at least 20% annually after fees and expenses on an annual basis over a period of years, not months.

Diversification has been, and balance, like Wellington, has been so drummed into me, it's part of my personality.

I think it is crucial to diversify one's portfolio.

In my view, the biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital. Not only is the mere drop in stock prices not risk, but it is an opportunity. Where else do you look for cheap stocks?

Well, the most important thing in investing is to know what you're investing in, and if you're confident in the outcome, it's important to stay true to your position.

Market risk is like taking a plunge into a cool pool ... a lot of people are finding out right now what their risk tolerance is.

Diversification is an established tenet of conservative investment.