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Diversification Quotes

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Diversification Quotes

“Managing a portfolio is like managing a garden. You don’t just want different kinds of plants in your garden. You want those different plants to have synergy and to work together harmoniously to maximize productivity. In the same way, when different elements in the portfolio have synergy and work together to help each other maximize individual productivity, their collective yields can then be reinvested to maximize the productivity of the whole portfolio. There’s a compounding effect and a multiplicative value effect that takes place with the permaculture investing approach.”

BusinessDiversificationPortfolio ManagementPermaculture Investing
Author:Hendrith Vanlon Smith Jr, CEO of Mayflower-Plymouth
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“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.”

TwoFactsEvolutionConsequencePopulationGenesAdaptationFrequencySimultaneousDiversificationIgnoring Facts
Book:Toward a New Philosophy of Biology: Observations of an Evolutionist
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“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.”

PeopleHumansMayProblemCertainInterestTakenHuman NatureUniversalWideBackgroundsAppealsConsiderationCongregationDiversificationHuman Problems
Book:A Guide to Confident Living
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“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.”

IfsThinkingYearsLooksMayGrowthSecretWorryEconomyTaxesRelationSouthCriticalOilDecadesAttractiveMechanismContinentsSouth AfricaLook At MeEmphasisProfitablePrivate SectorMineralsConcessionsDiversification
Author:Patrice Motsepe
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“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.”

LongUseCoursesEnjoyMovementReturnBehaviorToolsInvestingActiveManagersDecentOwnersInvestorsOwnershipUnnecessaryTradingEquityLong LifePaymentInadequateBorrowedFeesAdvisorsDiversificationBorrowed Money
Author:Warren Buffett
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“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.”

TryingMindPlayActionPastValuesTurnsGamesResultsReturnBeatsInvestingTricksProportionStayingInvestorsMaximumOur ActionsHindsightHunchesDiversification
Author:Jeremy Siegel
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“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.”

IfsEnoughTurnsOpportunitySoundQualityPracticeSecurityLowsArgumentSafetyInvestmentInvestingMediocreAdequateCriteriaMarginsBuyersDiversification
Author:Benjamin Graham
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“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.”

IfsKnowsHumansValuesHuman BeingsKnow HowWonderfulCrazyMadnessInvestingStrikesListsBuyingCharlieLikelihoodAttractivenessDiversification
Author:Warren Buffett
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“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.”

FirstsDifferentNumbersCompanyInformationPolicyJudgmentSafetyInvestmentInvestingStrikesStakesAdequateGambleLarge NumbersDiversificationGood JudgmentTravestySafety First
Author:John Maynard Keynes
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“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.”

WayChoicesWatchesRichProtectBillsInvestmentInvestingEggsGatesClientsGet RichBasketsBrokersDiversificationEggs In One BasketStock Broker
Author:Jim Rogers
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“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.”

TryingKindMeanBookWaitingWorstDisciplineFameLowsBaseballBallsInvestingSizeCornersStrikesFatsSpotsCellsReachingZoneHallsHittingMinorsTicketsBatsHall Of FameDiversification
Author:Warren Buffett
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“... 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.”

KnowsShouldHas BeensMadeImportantBigsCertainDecisionKnownShould HaveImportant ThingsInvestingRelativeDozenQuantityCharlieShould Have BeenDoing YouDiversificationNet WorthBig Decisions
Author:Warren Buffett
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“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?”

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Author:Bill Ackman
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“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.”

PeopleWorldYearsCountryDifficultLeadershipEconomySuccessfulEconomicEventsPolicyDevelopmentProveUnityThoughtfulGuaranteesBeing SuccessfulGuarantees ThatEconomic PolicyWorld EconomyDiversification
Author:Ilham Aliyev
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“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?”

PeopleIfsThinkingIdeasDoneWholeFeelingsResultsStyleTerribleGunConceptsIntelligentInvestmentAverageFeel GoodInsaneInvestorsWhipsDisserviceDiversificationBandwagon
Author:Charlie Munger
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