Robert Kiyosaki – Why Diversification is a Mistake

3 Responses

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1. 

   spunright

   Buffet is not a useful example for the average investor. If I had $50B to play with then I could lose $49B and still be a very rich guy and won’t miss a meal. The typical investor has $50K in their 401K and they hope to grow it toward their retirement data. If they put the entire $50K in energy stocks and energy tanks they’re hosed. The more you have that you can safely lose the more aggressive and less diversified you can be.

   March 7, 2010 at 11:43 am
2. 

   JustinJamm222

   I see what Kiyosaki is really saying: the more reason you have to “know which horse will win,” the more money you put on that horse. WHEN YOU DON’T KNOW (as with average investors), diversify.

   e.g. I’m mostly in stocks now. I have almost nothing in bonds, cash or gold, because I am VERY CONFIDENT that those three types of assets are NOT about to go up FURTHER than they are now. Stocks will.

   However, I have diversified my stocks, as I do not “know” which sectors and companies will do best.

   March 7, 2010 at 12:41 pm
3. 

   InfernalGoblinMusic

   I disagree with this. I’v read the winning investment habits of Warren Buffet and George Soros.

   You must understand that they are the best investors in the world. They live for making money. Most guys like me do not. I just want to achieve financial independence as fast as possible, why would I want to make a loss at all?

   Unless you’re highly skill in finance, I don’t think trying to copy Warren Buffet is going to work out well for you.

   However I still appreciate Kiyosaki, thank you.

   March 7, 2010 at 1:38 pm