Risk Diversification Quotes

There is no such thing as high returns without risk.

Diversifying sufficiently among uncorrelated risks can reduce portfolio risk toward zero. But financial engineers should know that's not true of a portfolio of correlated risks.

I'm sure that in the fullness of time we'll learn that one or more of these seemingly promising technologies were dead ends. And that's the nature of innovation, and that's why we should spread our bets; we should not put our eggs in any one basket. Some of these will be grand successes, some of them will be average, and some of them will be abject failures.

It doesn't even matter how successful a movie like 'Up' is: you'll never sell a lot of toy walkers. But that's the way we spread out the risk.

I know many members of our community steer clear of Wall Street because of the perception that the stock market is risky, but I am convinced the biggest risk of all is not taking one.

I would never be 100 percent in stocks or 100 percent in bonds or cash.

It doesn't need to be consistently concentrated in these venture-capital funds and things like that.

A syndicate is a group that has gotten together to pool their money so they can cover more contingencies. If I come to track with, say, $200, and I join a syndicate of 20 people, each of whom can bet $200, we can spread our bets, and that gives us a better chance of winning.