Do you agree with Buffett on being a skeptic of diversification?
>Diversification is protection against ignorance. It makes little sense if you know what you are doing.
>Wide diversification is only required when investors do not understand what they are doing.
>A lot of great fortunes in the world have been made by owning a single wonderful business. If you understand the business, you don’t need to own very many of them.
>Keep all your eggs in one basket, but watch that basket closely.
I guess so, a lot of people don't know what they're doing tho, myself included so I wouldn't feel bad about diversifying
No, not at all.
Diversification in real estate, stocks, crypto, gold, and a bit of art/watches/whatever with funny money from dividends makes a lot of sense. Not gains wise. But security wise. Don't forget that Berkshire never really had to deal with a state of the world like we have now. Until now. And it is run by other folks now.
unless you concentrate in the wrong thing. then you're going to be broke.
Bro i know u
Dubai?
>goy id
FRICK
shit, yes, how did you know that?
Diversify if you're rich, concentrate if you're poor
Still when concentrating do not put everything into one thing
I put all my money into a crypto token last bullrun and got 3000%+ or something like that, now I put most of it in bitcoin and silver/gold
He literally said that diversification is for when you dont know what are you are doing.
He probably also said to not fart at one point or another. Unless you know what you're doing ofc.
There's nothing wrong with not really knowing what you're doing if you're just a retail investor. Unless you got more than $10M to invest, just get an index fund.
Concentration also BTFOs you.
t. currently BTFO by concentration
What was the BTFO? Was it obvious in retrospect? For me it's LINK. Been all in 4 years straight
Retail investors over-diversify out of fear. They buy Coca-Cola but also Pepsi.Home Depot and Lowe's. Philip Morris and Altria. They buy at least one insurance stock and other telcom one because they feel they need to have one of each even if they don't know the industries.
That's diworsification in action.
> Fear is the mind killer.
>Diversification is bad
This is the dipshit who told Bill Gates in the 1990s that he shouldn't hold just Microsoft stock. He should diversify.
Today Bill Gates is worth 140 billion.
If Bill Gates had ignored Buffet and just kept his Microsoft stock, he'd be now worth at least 900 billion.
So great advice there, Warren.
Now personally I'm glad Gates isn't worth 900 billion because he's a dangerous money grabbing c**t who produced shit software and is a control freak.
The point of the story is that Warren Buffet, like many rich people, is not as smart as he thinks he is and often gives bad advice
Concentration only works better if you have some kind of insider knowledge, otherwise it's too risky.
my biggest gains in crypto was always when i was all in on one coin
Are you still all in on any coin?
Absolutely. It's kind of a no-brainer. You diversify to shield yourself from losses, but by the same token, it also shields you from gains. Pointing out that Warren Buffet ain't really the genius he's made out to be is beside the point. He's correct.
diversification for diversification’s sake spreads your risk around but it eats into any alpha that might result from expertise/foresight
Frick that boomer. He’s a moronic grifter and should immediately follow his gay buddy Charles. Only jeets still worship that clown troony homosexual
Only if you are poor.
Splitting 10k up 5 times is pointless.
Splitting 10 million up 5 times is wise.