Diversification Quotes

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.

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

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

Diversification and globalization are the keys to the future.

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.

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

We say we are trying to buy into businesses with excellent economics, run by honest and able people at a decent price. We buy very few securities, so we look at it as "focused" investing.

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

Diversification is an established tenet of conservative investment.

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.

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.

Diversification may preserve wealth, but concentration builds wealth.

I think we are seeing a radical shift in the business in general. The studios are making much more of the real big extravaganzas and there are other kinds of films that are coming out. I think you are going to begin to see more diversification that we've seen in the past.

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.

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.

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

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.

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

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.

Nothing's dangerous if you know what you're doing.

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.

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.

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.

... but the important thing is that when you do find one where you really do know what you are doing, you must buy in quantity.... Charlie and I have made a dozen or so very big decisions relative to net worth, although not as big as they should have been. And in each of those, we've known that we were almost certain to be right going in.

Diversification is a protection against ignorance. It makes very little sense for those who know what they're doing.

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

If you have trouble imagining a 20% loss in the stock market, you shouldn't be in stocks.

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.

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.

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.

We're non-diversified. We focus. Why not buy more of your best idea rather than your 60th best idea? How many companies can I really know well over time and focus on, on a daily basis?

We try to exert a Ted Williams kind of discipline. In his book The Science of Hitting, Ted explains that he carved the strike zone into 77 cells, each the size of a baseball. Swinging only at balls in his "best" cell, he knew, would allow him to bat .400; reaching for balls in his "worst" spot, the low outside corner of the strike zone, would reduce him to .230. In other words, waiting for the fat pitch would mean a trip to the Hall of Fame; swinging indiscriminately would mean a ticket to the minors.

Career diversification ain't a bad thing.

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.

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

If you know how to value businesses, it's crazy to own 50 stocks or 40 stocks or 30 stocks, probably because there aren't that many wonderful businesses understandable to a single human being in all likelihood. To forego buying more of some super-wonderful business and instead put your money into #30 or #35 on your list of attractiveness just strikes Charlie and me as madness.

Our policy is to concentrate holdings. We try to avoid buying a little of this or that when we are only lukewarm about the business or its price. When we are convinced as to attractiveness, we believe in buying worthwhile amounts.

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.

It's important to Russia to be able to attract capital and to attract technology to develop their oil fields, their oil and gas fields, many of which suffer from lack of access to the very best technologies. And it's also important, and this has been the US government's view to have diversification of supply, diversification of supply roots and, of course, diversification in terms of alternative energy.

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.

Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.

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

The uniform makes for brotherhood, since when universally adopted it covers up all differences of class and country.

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.

To suppose that safety-first consists in having a small gamble in a large number of different companies where I have no information to reach a good judgment, as compared with a substantial stake in a company where one's information is adequate, strikes me as a travesty of investment policy.

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.

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.

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?

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.

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.