Portfolio Diversification Quotes

When stocks are attractive, you buy them. Sure, they can go lower. I've bought stocks at $12 that went to $2, but then they later went to $30. You just don't know when you can find the bottom.

In our view, derivatives are financial weapons of mass destruction carrying dangers that, while latent, are potentially lethal.

The financial markets generally are unpredictable. So that one has to have different scenarios... The idea that you can actually predict what's going to happen contradicts my way of looking at the market.

Soros is the best loss taker I've ever seen. He doesn't care whether he wins or loses on a trade. If a trade doesn't work, he's confident enough about his ability to win on other trades that he can easily walk away from the position.

Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.

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

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

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.

When you build a bridge, you insist that it can carry 30,000 pounds, but you only drive 10,000-pound trucks across it. And that same principle works in investing.

Nobody ever lost money taking a profit.

Risk management is the most important thing to be well understood. Undertrade, undertrade, undertrade is my second piece of advice. Whatever you think your position ought to be, cut it at least in half.

When I was very young, maybe 12 years, I began to make investments.

The average American thinks billionaire investors are going to be right based on some talking head. They invest and they have no backup plan. Americans think these guys are giant risk-takers. The truth is they believe in taking as little risk as humanly possible, for the maximum amount of upside. They're looking for that spread of disproportionate risk-reward.

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

Investing is about making probabilistic decisions with limited information about an unknowable future. The variables are well known, as are the possible outcomes.

If you have the opportunities of Berkshire, an investment in gold is dumb.

There is little room for complacency, and it is important to guard against sporadic volatility in financial markets.

I've always been pleased with the investments I've made with my friend Albert Frere and I regret not having followed him more, because I would have been a lot richer.

As a bull market turns into a bear market, the new pros turn into optimists, hoping and praying the bear market will become a bull and save them. But as the market remains bearish, the optimists become pessimists, quit the profession, and return to their day jobs. This is when the real professional investors re-enter the market.

I'm quite bullish. We're coming up on year 15 of a flat stock market. Historically that's a pretty good sign. So I'm not a hedge-fund manager but if I was I think I'd be feeling pretty good.

Individual investors beware: If you're constantly worried about a crash, you're probably making some big mistakes - and losing a lot of money in the process.

With each investment you make, you should have the courage and the conviction to place at least ten per cent of your net worth in that stock

Listen to market strategists, and a word that comes up a lot these days is 'volatility.'

When you see a 'Shark fight' erupt, we aggressively want to understand what we are committing our money toward.

My stockbroker asked me something important today: paper or plastic?