Quotes & Sayings About Diversification

Diversification may preserve wealth, but concentration builds wealth. — Warren Buffett

I believe in diversification of income, because you never know what will happen. I'm a slightly paranoid person who thinks things could be ruined at any time. — Eugene Mirman

The securitisation of mortgages added a new dimension of systemic risk. Financial engineers claimed they were reducing risks through geographic diversification: in fact they were increasing them by creating an agency problem. The agents were more interested in maximising fee income than in protecting the interests of bondholders. That is the verity that was ignored by regulators and market participants alike. — George Soros

Buffett himself says, Diversification is protection against ignorance. (It) makes very little sense for those who know what they're doing. — Robert T. Kiyosaki

In many instances, automation in itself facilitates more diversification opportunities, in freeing up production capacity and enabling shorter run, more targeted copies, and it can also be essential in the interface with additional and new processes such as web drying, inkjetting etc. — Eric Bell

The Berkshire-style investors tend to be less diversified than other people. The academics have done a terrible disservice to intelligent investors by glorifying the idea of diversification. Because I just think the whole concept is literally almost insane. It emphasizes feeling good about not having your investment results depart very much from average investment results. But why would you get on the bandwagon like that if somebody didn't make you with a whip and a gun? — Charlie Munger

For investors who do want to speculate in high-yield bonds, one alternative may be a junk bond mutual fund, which can offer investors the relative safety of diversification. — Alex Berenson

In choosing a portfolio, investors should seek broad diversification, Further, they should understand that equities
and corporate bonds also
involve risk; that markets inevitably fluctuate; and their portfolio should be such that they are willing to ride out the bad as well as the good times. — Harry Markowitz

I don't think that a mutual fund that invests exclusively in biotech start-ups or invests exclusively in companies in Thailand offers any great safety or diversification. — Ron Chernow

I like "multi-" ... multiplicity, multicultural, multiplication etc. Any contribution to diversification and value augmentation is achievement. — Rossana Condoleo

As a consequence, geneticists described evolution simply as a change in gene frequencies in populations, totally ignoring the fact that evolution consists of the two simultaneous but quite separate phenomena of adaptation and diversification. — Ernst Mayr

The development of our human resources is an area in which we need to do well as it is decisive in determining the success of our diversification programme. — Hassanal Bolkiah

We may live in concrete nests piled on top of each other, we may file in and out of our planes and freeways in neat lines, but we are making it all up as we go along. An ant is born into a complex chemical environment where every small instruction had been laid down in advance. Mother tells the workers what to do and they do everything for the greater good of their enormous family.
In contrast, every human being is capable of working for the advancement of their own procreating, their own minuscule families. Yet we somehow recognize the value of a larger form of society, and readily respond to a larger world beyond our own narrow self-interests. With our unique creative capacity, we have modified ourselves as we have modified our physical conditions, and we have developed an extraordinary division of labor. You and I may be as different as night and day, but that is our strength, and it is precisely this diversification that makes my time in Africa so intensely satisfying. — Craig Packer

All mammals undergo a certain degree of diversification. Darwin knew that. When he drew a family tree, it had many branches on it. — Donald Johanson

The diversification of the people's demand could not be followed by the state apparatus. — Anatoly Chubais

Diversification is a hedge for ignorance — William O'Neil

There is no question that an important service is provided to investors by investment companies, investment advisors, trust departments, etc. This service revolves around the attainment of adequate diversification, the preservation of a long-term outlook, the ease of handling investment decisions and mechanics, and most importantly, the avoidance of the patently inferior investment techniques which seem to entice some individuals. — Warren Buffett

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

If you want to make a lot of money, resist diversification. — Jim Rogers

We need to diversify our economy, and the energy industry would be a great place to begin that diversification. — Sharron Angle

Saying that financial literacy means diversification is just another example of the fox teaching the chickens. — Robert Kiyosaki

The acceleration of the marketing process, the concentrating of manufacturing, greater diversification, increased international competition, have in turn speeded up product improvements, product innovations and new product introductions. The stakes are high, the failures costly. — Tom Sutton

It can be shown that maximum diversification is achieved by holding each stock in proportion to its value to the entire market (italics added) ... Hindsight plays tricks on our minds ... often distorts the past and encourages us to play hunches and outguess other investors, who in turn are playing the same game. For most of us, trying to beat the market leads to disastrous results ... our actions lead to much lower returns than can be achieved by just staying in the market. — Jeremy Siegel

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

Investors, of course, can, by their own behavior make stock ownership highly risky. And many do. Active trading, attempts to "time" market movements, inadequate diversification, the payment of high and unnecessary fees to managers and advisors, and the use of borrowed money can destroy the decent returns that a life-long owner of equities would otherwise enjoy. Indeed, borrowed money has no place in the investor's tool kit. — Warren Buffett

Product diversification comes into the mix as customers continue to strive for new revenue streams and a better USP. — Eric Bell

Diversification is an established tenet of conservative investment. — Benjamin Graham

The net effect of increasing scale, centralization of capital, vertical integration and diversification within the corporate form of enterprise has been to replace the 'invisible hand' of the market by the 'visible hand' of the managers. — David Harvey

We believe that almost all really good investment records will involve relatively little diversification. The basic idea that it was hard to find good investments and that you wanted to be in good investments, and therefore, you'd just find a few of them that you knew a lot about and concentrate on those seemed to me such an obviously good idea. And indeed, it's proven to be an obviously good idea. Yet 98% of the investing world doesn't follow it. That's been good for us. — Charlie Munger

If you invest and don't diversify, you're literally throwing out money. People don't realize that diversification is beneficial even if it reduces your return. Why? Because it reduces your risk even more. Therefore, if you diversify and then use margin to increase your leverage to a risk level equivalent to that of a nondiversified position, your return will probably be greater. — Jeff Yass

The best argument for mutual funds is that they offer safety and diversification. But they don't necessarily offer safety and diversification. — Ron Chernow

As a result of overdiversification, their (active managers) returns get watered down. Diversification covers up ignorance. Active managers haven't done enough research into any of their companies. If managers have 200 positions, do you think they know what's going on at any one of those companies at this moment? — Bill Ackman

Keep all your eggs in one basket, but watch that basket closely. — Warren Buffett

Early Chinese thinkers had taken variety at face value. They had favored diversification and collected anomalies instead of trying to explain them away. — Paul Feyerabend

Diversification is everything. You get past "this" by having lots of "that"s. — James Altucher

Here is part of the tradeoff with diversification. You must be diversified enough to survive bad times or bad luck so that skill and good process can have the chance to pay off over the long term. — Joel Greenblatt

Diversification is your buddy. — Merton Miller

I started digging and found that Israel signed a peace treaty with the United Arab Emirates after the country had diversified their economy, instead of being solely oil-based. This diversification had brought about modernization. I realized that if you land the price of oil, countries will diversify their economies and as a result, modernize. — Shai Agassi

Events and developments that we have observed in 2014, prove that this year will be very difficult for the world economy, but thoughtful economic policy, diversification and unity between the country's leadership and people guarantee that this year will be successful for us. — Ilham Aliyev

The three principal trends affecting how we do business in the newspaper production industry might best come under the headings: automation, diversification, distributed print. — Eric Bell

Our budget also reflects key components of our campaign. It's very much focused on stabilizing public services, restoring stability to public services and investing in job creation and economic diversification and, generally speaking, acting as a cushion during this economy, something fundamentally different than what the other parties proposed in the last election. — Rachel Notley

I do not believe in diversification. Take a close look at
some of the greatest entrepreneurs in U.S. history. Henry Ford never
diversified; Bill Gates didn't diversify. I strongly believe that the best
way to create real wealth is to put one's eggs in one basket and watch
that basket (the right one) very carefully. In fact, one can go broke
diversifying. — Ziad K. Abdelnour

1. Keep speculation and investments separate.
2. Don't be fooled by a name.
3. Be wary of new promotions.
4. Give due consideration to market ability.
5. Don't buy without proper facts.
6. Safeguard purchases through diversification.
7. Don't try to diversify by buying different securities of the same company.
8. Small companies should be carefully scrutinized.
9. Buy adequate security, not super abundance.
10. Choose your dealer and buy outright. (Babson abhorred any type of margin or installment payment plans and, in fact, claimed he never borrowed money.) — Kenneth L. Fisher

Mutual funds have historically offered safety and diversification. And they spare you the responsibility of picking individual stocks. — Ron Chernow

There is a close logical connection between the concept of a safety margin and the principle of diversification. — Benjamin Graham

The idea of excessive diversification is madness. — Charlie Munger

Diversification is a surrogate - and a damn poor surrogate - for knowledge, elements of control, and priceconsciousness. — Martin J. Whitman

In order to give these customers what they want within an appropriate timescale, we are committed to developing a broad range of technologies-including plug-in hybrid, electric vehicle and FCV, corresponding to the simultaneous diversification of energy sources. — Yoshikazu Tanaka

The oil and gas sector in the North Sea does have a strong future if we do the right things now, but we've got to make sure that the infrastructure is right to support the sector, but also to support, over the next few years, diversification as well. — Nicola Sturgeon

It is our argument that a sufficiently low price can turn a security of mediocre quality into a sound investment opportunity - provided that the buyer is informed and experienced and he practices adequate diversification. For, if the price is low enough to create a substantial margin of safety, the security thereby meets our criterion of investment. — Benjamin Graham

Wide diversification is only required when investors do not understand what they are doing. — Warren Buffett

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

In a large congregation, while there is a wide diversification of interest, it is also true that there are only a few basic human problems. It must also be taken into consideration that people are people regardless of who they are or what their backgrounds may be. There are certain deep universal appeals to human interest and to these human nature always responds. — Norman Vincent Peale

Diversification and globalization are the keys to the future. — Fujio Mitarai

Diversification is something that stock brokers came up with to protect themselves, so they wouldn't get sued for making bad investment choices for clients. Henry Ford never diversified, Bill Gates didn't diversify. The way to get rich is to put your eggs in one basket, but watch that basket very carefully. And make sure you have the right basket. — Jim Rogers

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

The export of oil, the export of minerals, will for many decades continue to be a critical part for the growth of African economies. The emphasis is on diversification. We have for many years - not just in South Africa but in many parts of the continent - spoken about beneficiation. And I think part of the secret, in relation to beneficiation, is you have got to make it attractive, profitable for the private sector - and it will take off. You may have to look at mechanisms like tax concessions ... You will not have to worry about beneficiation if it makes commercial sense. — Patrice Motsepe

What went wrong is we had tremendous concentration in the sense we put a lot of our money to work against U.S. real estate. We got here by lending money, and putting money to work in the U.S. real estate market, in a size that was probably larger than what we ought to have done on a diversification basis. — Vikram Pandit

We inhabit an internal world that is subject to diversification. Every day we undergo personal transformation based upon experiences, thoughts, and feelings. — Kilroy J. Oldster

I like multinational companies. They may have 40 to 60 percent of their engines of growth in the United States, but I do like the diversification of being more global. — Laurence D. Fink

The starting point for energy security today as it has always been is diversification of supplies and sources. — Daniel Yergin

The purpose of diversification is so that when one investment goes down or is not doing well, you are insulated from the result because of the others you have in place. In a job or career, most of us are trying to specialize so much so that we've ended up with all of our eggs in the same basket. That's not managing risk at all. That's putting yourself at risk. - Chris Lutz — Chris Lutz

As much as with increased exploration new gas reserves can be found, what must be obvious to all is that our oil and gas reserves are not renewable and they are diminishing, and to protect the generations to come, we must engage in nothing short of a radical shift in the diversification of the economy. — Anthony Carmona

Global capital is agnostic - it has no loyalties. There's an overhang of capital in the U.S., and the key is yield pickup. What Africa is providing is a diversification play and also opportunities for yield pickup for the investor that's aware of what he or she is doing. — Euvin Naidoo

We can no longer let the threat of an early frost send a chill of fear throughout a large portion of our workforce. Diversification is the only answer. — Alan Autry