Diversification Quotes

“Diversification across success metrics acts as a hedge against unforeseen risks.”
― Hendrith Vanlon Smith Jr., Board Room Blitz: Mastering the Art of Corporate Governance

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

“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.”
― Hendrith Vanlon Smith Jr, CEO of Mayflower-Plymouth

“Proper diversification means investing in uncorrelated assets, and investing in multiple assets needs multiple sets of knowledge, more hours of research, and more market
following. It is definitely more work for an investor.”
― Naved Abdali

“It is a common misconception that if you diversify, you don’t need to learn anything. Just buy a bunch of stocks, and you will be good. Nothing can be further from the truth.”
― Naved Abdali

“No amount of diversification can replace investment research. If you want to invest, you have to learn.”
― Naved Abdali

“Selecting twenty to thirty good stocks in unrelated industries is not an easy task. It takes immense efforts to follow twenty shares, so investors take the shortcut. They try to replace the efforts with more shares, hundreds of those.”
― Naved Abdali

“Everybody does some sort of diversification. It is the extent and broadness that varies according to risk tolerance.”
― Naved Abdali

“All of us need to invest our capital to achieve financial freedom, but most of us are not equipped with the soul and skills to have concentrated portfolios.”
― Naved Abdali

“Diversification does not guarantee protection from losses. It provides a weighted-average return of the portfolio.”
― Naved Abdali

“Proper diversification can be achieved with a handful of assets. On the other hand, a poorly selected portfolio with hundreds of stocks and bonds can be inadequate for diversification purposes.”
― Naved Abdali

“Diversification is a component and in some cases a very good initiation of value creation.”
― Pearl Zhu, Digital Boardroom: 100 Q&as

“Tidy your business by looking at your product offerings and categorize them by putting them into value grade buckets.”
― Richie Norton

“The most significant benefit of a diversified portfolio is psychological stability when you need it the most.”
― Naved Abdali

“In concentrated portfolios, market fluctuations are magnified. All market noises look like real events.”
― Naved Abdali

“It is challenging for a human brain to distinguish between noises and threats if a considerable value is at stake.”
― Naved Abdali

“It is a misconception that diversification will magically reduce the losses. It cannot be far from the truth. Diversification does not reduce losses but provides a weighted average return of your portfolio.”
― Naved Abdali

“Familiarity bias drags you to the safety of your comfort zone and, in doing so, unwittingly increases your risks by limiting diversification and investment opportunities.”
― Coreen T. Sol, Unbiased Investor: Reduce Financial Stress and Keep More of Your Money

“Index funds investing allows the spread of risk across different asset classes, if you can diversify, why not?”
― David Sikhosana, Time Value of Money

“Diversification in business is like playing the game of Ayò, where every seed moved and dropped in the hole across the board represents your investments.”
― Utibe Samuel Mbom, Your Clients and You