This week we asked you an age old question…”Is it better to focus your investments, or to diversify?”
Vanguard founder Jack Bogle certainly doesn’t. He maintains that diversification guarantees returns while hedging the market, and that’s what the average investor (not Mark Cuban) needs.
“For the average investor that doesn’t want to spend his life consumed with investing–and should not spend his life consumed with investing–he should get a nice simple strategy of diversification, not only by asset class–that is to say, stocks and bonds largely–but by the number of stocks and bonds in each class, a thousand even. And what do you get for that? You get a guarantee that you’ll get your fair share of the market returns that the bond and stock market are generous enough to give to us.”
So where do you stand on what’s more important– concentration or diversification? We can’t all be Mark Cuban after all. But then again, we can’t all be Jack Bogle either.
Here’s some of what you said:
“Buy gold, then you don’t need to worry about diversity.” (Sounds like this guy is taking his cues from Ron Paul)
“You have to diversify. If you don’t, you can’t adapt, at least not as an average investor. If you can’t adapt, you’re no good.”
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