Diversification Strategy Quotes & Sayings

How does the industry seek to master the risks? Through mathematics. The common-sense version of what sophisticated investors do is diversification, a technique so old it's mentioned in the Talmud, where the strategy advocated is to have a third of your assets in trade, a third in cash and a third in land. — John Lanchester

The strategy we've adopted precludes our following standard diversification dogma. Many pundits would therefore say the strategy must be riskier than that employed by more conventional investors. We disagree. We believe that a policy of portfolio concentration may well decrease risk if it raises, as it should, both the intensity with which an investor thinks about a business and the comfort-level he must feel with its economic characteristics before buying into it. — Warren Buffett