9 Legendary Quotes on Diversification

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

” Many financial advisors recommend that you diversify for your own protection. What they fail to tell you is that it is also for their protection. Since most financial advisors cannot tell you exactly which stock or mutual fund is a great investment, they tell you to buy a bunch of them “

” Do you really like a particular stock? Put 10% or so of your portfolio on it. Make the idea count. Good investment ideas should not be diversified away into meaningless oblivion “

” Obsession with broad diversification is the sure road to mediocrity “

” Investors have been so oversold on diversification that fear of having too many eggs in one basket has caused them to put far too little into companies they thoroughly know and far too much in others which they know nothing about “

” Don’t overstress diversification “

” Buying a company without having sufficient knowledge of it may be even more dangerous than having inadequate diversification “

” In my 45-year career as an investment counselor, humility did show me the need for worldwide diversification to reduce risk. That career did help me to become more and more humble because statistics showed that when I advised a client to buy one stock to replace another, about one-third of the time the client would have done better to ignore my advice. In other endeavors, humility about how little I know has encouraged me to listen more carefully and more wisely “

” Diversify. In stocks and bonds, as in much else, there is safety in numbers “

Recommended Article: 9 Legendary Quotes on Diversification

Related Articles:

• Most Popular Investment Theories Clients Ask Wealth Managers
• 10 Trading Quotes from the 5 Greatest Traders of All-Time
• 20 Traders Who Lost More than a Billion