Page 87 - Intelligent Investing (3)

What Diversification Looks Like

"Diversification is a protection against ignorance," Buffett once said. "[It] makes very little sense for those who know what

they're doing."

Meaning don’t put all your eggs in 1 basket however don’t spread yourself too thin investing in every company in
every market. That’s too much research and news to keep up with throughout the life of your investment.

Start with a few companies you like with numbers showing they are moving in an upwards trend and invest in
them

As your knowledge of companies and the market increases so should your portfolio not before

Short term bonds, gold and cryptocurrency are known as insurance against depressions or market droughts

As stocks drop treasury bonds and other forms of currency will spike and vice versa