It is unwise to spread one's funds over too many different securities. Time and energy are required to keep abreast of the forces that may change the value of a security. While one can know all there is to know about a few issues, one cannot possibly know all one needs to know about a great many issues.
Diversification - or concentration - of an investment portfolio directly correlates with the amount of time and energy put into making the selections. The more diversification, the less time for each decision.
"Diversification is a protection against ignorance. It makes very little sense for those who know what they're doing." - Warren Buffett
Diversification - or concentration - of an investment portfolio directly correlates with the amount of time and energy put into making the selections. The more diversification, the less time for each decision.
"Diversification is a protection against ignorance. It makes very little sense for those who know what they're doing." - Warren Buffett
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