Monday, July 03, 2006

Loser's Game



“Investors have been so oversold on diversification that fear of having too many eggs in one basket has caused them to put far too little into companies they thoroughly know and far too much in others about which they know nothing at all. It never seems to occur to them that buying a company without having sufficient knowledge of it may be even more dangerous than having inadequate diversification.”
-- Philip Fisher in "Common Stocks and Uncommon Profits"

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