Diversification Quotes

We believe that almost all really good investment records will involve relatively little diversification. The basic idea that it was hard to find good investments and that you wanted to be in good investments, and therefore, you'd just find a few of them that you knew a lot about and concentrate on those seemed to me such an obviously good idea. And indeed, it's proven to be an obviously good idea. Yet 98% of the investing world doesn't follow it. That's been good for us.

Concentrate your energy, thought and capital exclusively upon the business in which you are engaged... 'Don't put all your eggs in one basket' is all wrong. I tell you 'put all your eggs in one basket, and then watch that basket.'

The idea of excessive diversification is madness.

The more times and the more different things you try, the more likely it is that you will succeed.

You don't get rewarded for taking risk; you get rewarded for buying cheap assets. And if the assets you bought got pushed up in price simply because they were risky, then you are not going to be rewarded for taking a risk; you are going to be punished for it.

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

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?

Put all your eggs in one basket and then watch that basket.

There are two times in a man's life when he should not speculate [on the Stock Market]: when he can't afford it, and when he can.

The way to become rich is to put all your eggs in one basket and then watch that basket.

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.

Having the opportunity to follow the market frequently gives you the opportunity to see if you need to reevaluate your portfolio. But reevaluating your portfolio shouldn't trigger a sell signal so frequently.

There's lots of stocks out there and all you need is a few of 'em. That's been my philosophy.

I hate being pigeon-holed into anything. To me, the best thing is when the next job comes and is completely different to the one that I just had.

In investing, you get what you don't pay for. Costs matter. So intelligent investors will use low-cost index funds to build a diversified portfolio of stocks and bonds, and they will stay the course. And they won't be foolish enough to think that they can consistently outsmart the market.

When I bet on horses, I never lose. Why? I bet on all the horses.

Specialisation is for insects!

People do dollar cost averaging because they have regret of making one big mistake. But the fact of the matter is that, mathematically, the market rises more of the time than it falls. It falls, but it rises more of the time than it falls.

Behold, the fool saith, "Put not all thine eggs in the one basket" - which is but a matter of saying, "Scatter your money and your attention"; but the wise man saith, "Pull all your eggs in the one basket and - WATCH THAT BASKET." - Pudd'nhead Wilson's Calendar

We talk about long-term patient investing, and that idea that slow and steady does win the race, that time can be your best friend when it comes to investing. That's why we have a turtle as a logo at Ariel.

Once I accomplish one thing and I'm satisfied, I try something else. I may be 50 and doing something totally outside of music and acting. Maybe I'll become a kindergarten teacher.

Get big or get out!

I'm a working actor so I never really pick a film because of a genre, and I don't really turn them down because of genre. Anything that's unlike the picture I just finished is always more interesting.

I feed off variety. I don't want to repeat myself if I can help it, but once they've seen you doing one thing, directors often just want you to do it again.

A mouse never entrusts his life to only one hole.