Comments on: Diversify, or Quit Your Day Job

By: Dave

Dave — Thu, 08 Dec 2005 00:54:45 +0000

Loi, I agree overdiversifying is a bad and it is a trap many people fall into. I wrote about it in a past article, “Owning too many mutual funds a bad idea.”

By: Investing Intelligently » Blog Archive » Investors May Let Emotions Drive Decisions

Mon, 05 Dec 2005 16:50:45 +0000

[...] Benjamin Graham talks a lot about NOT thinking too hard when it comes to investing (unless you make it your full-time job like him) and keeping a simple, conservative approach: “It is no difficult trick to bring a great deal of energy, study, and native ability into Wall Street and to end up with losses instead of profits.” As well, there is the quote I gave at the bottom of this article. [...]

By: Loi Tran

Loi Tran — Fri, 02 Dec 2005 00:40:43 +0000

I’ve also read that article and thought Kiyosaki had given bad advice. The title to the article is really bad. He should have called it focusing on your investment efforts. He did not talk about the risks of not diversifying. Even though you pick investments that you think are the “best investments”, when you are wrong, let’s not hope you have all your money in that investment. People make mistakes, no matter how smart they are. It’s minimizing the mistakes that is important.

Overdiversifying is also bad. Diversifying works up to a point, then there’s diminishing returns on each investment until there is no extra benefit on each additional investment.

By: Alex Givant

Alex Givant — Thu, 01 Dec 2005 15:39:27 +0000

Another fact about Warren Buffet (I didn’t know that before, read it in “Bull!”, excellent book about bull period of 1982-2000): during bear market of 60s and 70s he timed the market - which is “no-no” for diversified portfolio.

By: Canadian Capitalist » To Not Diversify is Just Stupid

Canadian Capitalist » To Not Diversify is Just Stupid — Thu, 01 Dec 2005 04:29:47 +0000

[...] Also, check out posts on this subject on Investing Intelligently and Consumerism Commentary. [...]

By: Canadian Capitalist

Canadian Capitalist — Wed, 30 Nov 2005 13:54:09 +0000

One more fact about Warren Buffett. He is not just a successful investor, but he is a very successful businessman also. He is on many boards and is able to influence the direction of his investment. (e.g. shooting down Coca-Cola buying Quaker).

For most investors, not diversifying is just plain stupid. We all know what happened to investors who focussed on technology!