Quotes About Diversification

It is not best that we should all think alike; it is a difference of opinion that makes horse races.

Just as a cautious businessman avoids investing all his capital in one concern, so wisdom would probably admonish us also not to anticipate all our happiness from one quarter alone.

Conventional wisdom is not to put all of your eggs in one basket. 80/20 wisdom is to choose a basket carefully, load all your eggs into it, and then watch it like a hawk.

To minimize risk, investors want funds with securities that act differently. If one stock or bond fund declines in value, we want other stocks or bonds in the portfolio to gain in value. If two funds hold securities that are the same (i.e., overlapped), diversification is reduced and risk increases.

And someone with significant net worth or a large portfolio does not need to invest in risky investments in search of higher returns.

we suggest that you add from 10 percent to 20 percent more bonds than you think you need for safety. This will be your insurance against worry, and might help prevent you from selling at the wrong time.

It's important to understand that bonds and bond funds have a low correlation (they don't always move in the same direction at the same time) to stocks, so bonds can be a stabilizing force for a portion of your portfolio.

Indexing via low-cost mutual funds is a strategy that will, over time, most likely outperform the vast majority of strategies.

Paul Samuelson, first American to win the Nobel Prize in Economic Science: "The most efficient way to diversify a stock portfolio is with a low fee index fund. Statistically, a broadly based stock index fund will outperform most actively managed equity portfolios.

Jason Zweig, senior writer and columnist at Money magazine and coauthor of the revised edition of Benjamin Graham's classic, The Intelligent Investor: "If you buy-and then hold-a total stock market index fund, it is mathematically certain that you will outperform the vast majority of all other investors in the long run. Graham praised index funds as the best choice for individual investors, as does Warren Buffett.

Whenever possible, we will use index funds with their low cost and low turnover.

An index fund dooms you to mediocrity? Absolutely not: It virtually guarantees you superior performance.

Rebalancing forces us to sell high and buy low. We're selling the outperforming asset class or segment and buying the underperforming asset class or segment. That's exactly what smart investors want to do.

You have these big $200 and $300 million movies with special effects, and I've always thought, 'Gee, why don't we make 30 movies instead of one $300 million movie?' Let's shake it up a bit; wouldn't that be a better bet? Evidently not.

People with highly transferable skills may be specialists in certain areas, but they're also incredible generalists - something businesses that want to grow need.

Kids of this day and age know you don't necessarily have to specialize in one sport no matter how much society and your coaches are pushing you towards that.

The risk of relying on a handful of customers is not just financial. Your product also is at risk when you're at the mercy of a few big spenders. When any one customer pays you significantly more than the others, your product inevitably ends up catering mostly to that customer's specific needs.

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.

My life has always been compartmentalized into different aspects. I have my speed skating Olympic pursuits, I have my personal life and have my business life and have my entertainment - TV - Hollywood - whatever have you - always compartmentalizing every aspect of my life.

I have spoken on many occasions about what I felt about a lack of black managers at the highest level. Total inclusion is good for our game and that is what I think everyone wants to see.

The risk was spread across the globe from American state pension funds to public health networks in Australia and even to town councils beyond the Arctic Circle. In Norway, for example, the municipalities of Rana, Hemnes, Hattjelldal and Narvik invested some $120 million of their taxpayers' money in CDOs secured on American subprime mortgages.

They achieved this by learning a crucial lesson: in finance small is seldom beautiful. By making their bank bigger and more diversified than any previous financial institution, they found a way of spreading their risks. And by engaging in currency trading as well as lending, they reduced their vulnerability to defaults.

Ekta Kapoor, the producer of 'Kaahin... ' once told me that you've got to keep breaking the mould to keep yourself in the game. Hence, I dare to do something different. For instance, after years of essaying flamboyantly dressed negative roles, I took on one of a demure singer in Zee TV's 'Sanjog Se Bani Sangini.'

I felt very comfortable moving from aerospace to automobiles.