Investment Diversification Quotes

In the long run, a portfolio of well chosen stocks and/or equity mutual funds will always outperform a portfolio of bonds or a money-market account. In the long run, a portfolio of poorly chosen stocks won't outperform the money left under the mattress.

Unbeknownst to most American investors, significant portions of their public pension, mutual fund, life insurance and private portfolios are comprised of stocks of privately held companies that partner with state sponsors of terror.

I invest in anything that Bernanke can't destroy, including gold, canned beans, bottled water and flashlight batteries.

When you diversify your mutual funds, you are diversifying something that is already diversified. Diversifying mutual funds is like taking high octane gasoline & adding water & then adding orange juice to it.

There's no use diversifying into unknown companies just for the sake of diversity. A foolish diversity is the hobgoblin of small investors. That said, it isn't safe to own just one stock, because in spite of your best efforts, the one you choose might be the victim of unforeseen circumstances. In small portfolios, I'd be comfortable owning between three and ten stocks.

Optimization tells us precisely how to diversify the portfolio, whether I should have 12% in semiconductors or 4% in biotech, etc., and it literally tells me how to diversify not only the industry groups but the stocks.

I'm invested in a lot of battery companies - and there's a lot that exists I'm not in.

I ended up buying a restaurant. Already we had invested in a gas station and a metal products plant.

Even with a margin of safety in the investor's favor, an individual security may work out badly. For the margin guarantees only that he has a better chance for profit than for loss - not that loss is impossible. But as the number of such commitments is increased the more certain does it become that the aggregate of the profits will exceed the aggregate of the losses.

I have always been very diversified, so I have never suffered a catastrophic loss. I spread my money around the way a large institutional investor does. I use different brokerage firms. I manage some of my accounts myself.

A good portfolio is more than a long list of good stocks and bonds. It is a balanced whole, providing the investor with protections and opportunities with respect to a wide range of contingencies.

Art is a form of asset. Hedge-fund managers who have made money fast should diversify into other areas.

It is a mistake to think that one limits one’s risk by spreading too much between enterprises about which one knows little and has no reason for special confidence.

Why tie to gold? Why not 1982 Bordeaux?

Be realistic and truthful - and tell Hong Kong businessmen honestly that they should go for long-term investments since it is unlikely money can be made in the short haul.

After I began to make some money, my brain-damaged accountant put me in one business after another that went bad. The only one that panned out was a small bank, an old Scottish firm with London offices in Pall Mall. I was a director. We sold out to a larger bank. That was the only successful venture I've had, apart from acting.

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

Wealth is not about having a lot of money; it's about having a lot of options.

The most important key to successful investing can be summed up in just two words-asset allocation.

Diversification is an established tenet of conservative investment.

The difference between success and failure is not which stock you buy or which piece of real estate you buy, it's asset allocation.

Focus on all four of your net worth factors: increasing your income, increasing your savings, increasing your investment returns, and decreasing your cost of living by simplifying your lifestyle.

Will customers keep supporting the enormous overhead required to sustain ineffectual, unproductive stock picking across an array of thousands of individual funds devoted to every investing 'style' and economic sector or regional subgroup that some marketing idiot can dream up? Not likely. A brutal shakeout is coming and one of its revelations will be that stock picking is a grossly overrated piece of the puzzle, that cost control is what distinguishes a competitive firm from an uncompetitive one.

I don't think you should put all your money in one place. It must be invested in different investments.

What I'm trying to say is that for the average investor, what I would encourage them to do is to understand that there's inflation and growth. It can go higher and lower and to have four different portfolios essentially that make up your entire portfolio that gets you balanced.