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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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Diversification Is A Protection

Warren Buffett
...
Diversification Is A Protection Against Ignorance. It Makes Very Little Sense For Those Who Know What They're Doing.

Understanding the Quote: "diversification is a protection against ignorance. it makes very little sense for..."

This quote by Warren Buffett reflects deeply on the theme of ignorance. It connects to the universal human journey of purpose, motivation, and reflection. Often categorized under Ignorance, Littles, Investing, the quote offers insight, emotional clarity, and intellectual inspiration to readers worldwide.

Whether you’re a student exploring new ideas, a leader trying to motivate your team, or someone seeking direction in life — this quote provides value. It resonates because it’s more than words — it’s a bridge between experience and wisdom. It shows how Warren Buffett interprets life's core challenges and triumphs.

Lessons From the Quote

This quote teaches resilience and focus. It reminds readers that no matter where they stand in life, reflection and self-awareness lead to growth. Each word has meaning, and when studied, it becomes clear how impactful thoughtful language can be.

About Warren Buffett

Warren Buffett is celebrated for insightful thoughts on ignorance and littles. Their legacy lives on through writings that guide, comfort, and inspire. Discover more on their profile page.

Actionable Takeaways

  • Reflect on how this quote applies to your current life path.
  • Share the message with someone who needs inspiration.
  • Write your thoughts on this quote in a journal or blog post.
  • Use it as a daily affirmation or reminder.

Closing Thoughts

Quotes like this endure because they capture universal truths. They comfort us in solitude and empower us in groups. Carry this quote forward — live by its wisdom, share its message, and keep its essence alive.

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Topic
Ignorance
Littles
Investing
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Productive
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Advice
[w]e Think The Very Term 'value Investing' Is Redundant. What Is 'investing' If It Is Not The Act Of Seeking Value At Least Sufficient To Justify The Amount Paid? Consciously Paying More For A Stock Than Its Calculated Value -- In The Hope That It Can Soon Be Sold For A Still-higher Price -- Should Be Labeled Speculation (which Is Neither Illegal, Immoral Nor -- In Our View -- Financially Fattening).
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Investing
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Night
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Design
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Minneapolis
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Knows
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Games
Play
Trying
I'd Rather Have A $10 Million Business Making 15 Per Cent Than A $100 Million Business Making 5 Per Cent.
Cents
Millions
You Have Hedge Funds And People Like That Buying These Assets To Yield 15 Or 20 Percent, I Mean, That's The Buyer For These People That Are Trying To Unload Them.
Mean
Yield
People
If At First You Do Succeed, Quit Trying On Investing.
Trying
Investing
Firsts
There Is No Question We Have An Access Stock.
Access
We Only Want To Link Up With People Whom We Like, Admire, And Trust. ... We Do Not Wish To Join With Managers Who Lack Admirable Qualities, No Matter How Attractive The Prospects Of Their Business. We've Never Succeeded In Making A Good Deal With A Bad Person.
People
Wish
Quality
I Do Not Believe In Inheriting Your Position In Society Based On Which Womb You Come From... I Think A Rich Person Should Leave His Children Enough So They Can Do Anything, But Not Enough So They Can Do Nothing.
Wisdom
Children
Believe
You Are Lucky In Life If You Have The Right Heroes. I Advise All Of You, To The Extent You Can, To Pick Out A Few Heroes
Hero
Lucky
Advise
The Best Thing That Happens To Us Is When A Great Company Gets Into Temporary Trouble...we Want To Buy Them When They're On The Operating Table.
Business
Investing Money
Tables
I Have No Views As To Where It Will Be, But The One Thing I Can Tell You Is It Won't Do Anything Between Now And Then Except Look At You. Whereas, You Know, Coca-cola (ko) Will Be Making Money, And I Think Wells Fargo (wfc) Will Be Making A Lot Of Money And There Will Be A Lot - And It's A Lot - It's A Lot Better To Have A Goose That Keeps Laying Eggs Than A Goose That Just Sits There And Eats Insurance And Storage And A Few Things Like That.
Thinking
Eggs
Views
I Put Heavy Weight On Certainty. It's Not Risky To Buy Securities At A Fraction Of What They're Worth.
Weight
Heavy
Fractions
Inflation Could Be A Very - Is A Likely Consequence Out Of What's Going On Now.
Inflation
Consequence
I Would Say That Life At 84, I Am Having As Much Fun As I've Ever Had In My Life. I Mean I Get To Do What I Love Every Day With The People I Love-and It Just Doesn't Get Any Better Than That.
Fun
Mean
People
You Pay A Very High Price In The Stock Market For A Cheery Consensus.
Pay
Consensus
High Prices
I'll Bring My Tax Returns; You Bring Yours. I'll Meet You Anytime Anywhere.
Return
Taxes
Tax Returns
Credit Worthiness Is Like Virginity, It Can Be Preserved But Not Restored Very Easily, So It Is Crazy To Play Around With It.
Crazy
Play
Credit
We've Got A Wonderful Economic Formula In This Country.
Country
Wonderful
Economic
The Rest Of The World Really Likes Our Stuff Pretty Well. It's Just We Buy So Damn Much Of What They Produce.
World
Stuff
Likes
Bad Terminology Is The Enemy Of Good Thinking.
Thinking
Enemy
Good Thinking
I Think Once You Start Putting Phony Figures Into Financial Statements, You Get In A Lot Of Trouble. And We've Seen So Much Of That In The Last 20 Years.
Thinking
Years
Lasts
I Was Lucky To Have The Right Heroes. Tell Me Who Your Heroes Are And I'll Tell You How You'll Turn Out To Be. The Qualities Of The One You Admire Are The Traits That You, With A Little Practice, Can Make Your Own, And That, If Practiced, Will Become Habit Forming.
Hero
Practice
Quality
Intrinsic Value Can Be Defined Simply: It Is The Discounted Value Of The Cash That Can Be Taken Out Of A Business During Its Remaining Life.
Taken
Cash
Intrinsic Value
A Stock Doesn't Know That You Own It.
Knows
Very Successful People Say No To Almost Everything.
Successful
Investment Success
People
In A Bull Market, One Must Avoid The Error Of The Preening Duck That Quacks Boastfully After A Torrential Rainstorm, Thinking That Its Paddling Skills Have Caused It To Rise In The World. A Right-thinking Duck Would Instead Compare Its Position After The Downpour To That Of The Other Ducks On The Pond.
Thinking
Errors
Skills
America Should Stand For More Than Just Wealth.
Wealth
I Spend Twelve Hours A Week - A Little Over 10% Of My Waking Hours - Playing The Game. Now I Am Trying To Figure Out How To Get By On Less Sleep In Order To Fit In A Few More Hands.
Sleep
Hands
Order
You Can Lose Leverage, And It's The Only Way A Smart Guy Can Go Broke.
Smart
Guy
Way
Everybody's Got A Different Circle Of Competence. The Important Thing Is Not How Big The Circle Is. The Important Thing Is Staying Inside The Circle.
Circles
Important
Different
If I Subscribed To The Efficient Market Theory I Would Still Be Delivering Papers
Paper
Theory
Stills
You Don't Need To Be A Rocket Scientist. Investing Is Not A Game Where The Guy With The 160 Iq Beats The Guy With 130 Iq.
Business
Investment Success
Games
Never Invest In A Business You Can't Understand
Business
Investing
Buffets
Derivatives Are Like Sex. It's Not Who We're Sleeping With, It's Who They're Sleeping With That's The Problem.
Sex
Sleep
Derivatives
I Think You Should Read Everything You Can. In My Case, By The Age Of 10, I'd Read Every Book In The Omaha Public Library About Investing, Some Twice. You Need To Fill Your Mind With Various Competing Thoughts And Decide Which Make Sense.
Book
Thinking
Mind
Don't Invest In Pieces Of Papers (stocks), Invest In Great Businesses Underlying Them
Pieces
Paper
Great Business
You Ought To Be Able To Explain Why You’re Taking The Job You’re Taking, Why You’re Making The Investment You’re Making, Or Whatever It May Be. And If It Can’t Stand Applying Pencil To Paper, You’d Better Think It Through Some More. And If You Can’t Write An Intelligent Answer To Those Questions, Don’t Do It.
Jobs
Writing
Intelligent
I Mean, If Pearl Harbor Came Along, You Could Have Said The Planning Was Wrong By The Military Ahead Of Time Or Maybe The Battleships Shouldn't Have All Been In The Harbor And All That Kind Of Thing.
Military
Mean
Pearls
The Most Important Thing In Terms Of Your Circle Of Competence Is Not How Large The Area Of It Is, But How Well You've Defined The Perimeter.
Circles
Important
Term
If Knowing History Made You Rich, Librarians Would Be Billionaires.
Knowing
Would Be
Rich
I Don't Need 15 Houses. Owning Real Estate Doesn't Mean Much To Me. I Don't Like To Think About Things Like That. I Don't Need 12 Boats, Or Even The World's Largest Boat With A Crew Of 80. I'd Have To Take Care Of Them, To Worry About Them. I Get A Lot More Fun Out Of Life Without All The Bells And Whistles.
Fun
Real
Mean
If You’re In The Luckiest One Per Cent Of Humanity, You Owe It To The Rest Of Humanity To Think About The Other 99 Per Cent.
Life
Thinking
Helping Others
I Would Say The Biggest Single Cause Was We Had An Incredible Residential Real Estate Bubble.
Real
Causes
Incredibles
I Think You Are Out Of Your Mind If You Keep Taking Jobs That You Don't Like Because You Think It Will Look Good On Your Resume. Isn't That A Little Like Saving Up Sex For Your Old Age?
Life
Jobs
Sex
Gold Is A Way Of Going Long On Fear, And It Has Been A Pretty Good Way Of Going Long On Fear From Time To Time. But You Really Have To Hope People Become More Afraid In A Year Or Two Years Than They Are Now. And If They Become More Afraid You Make Money, If They Become Less Afraid You Lose Money, But The Gold Itself Doesn’t Produce Anything.
Years
Two
Long
In A Commodity Business, It's Very Hard To Be Smarter Than Your Dumbest Competitor.
Investing
Commodity
Competitors
There Is Seldom Just One Cockroach In The Kitchen. You Know, You Turn On The Light And, All Of Sudden, They All Start Scurrying Around.
Light
Kitchen
Cockroaches
Diversification Is A Protection Against Ignorance. It Makes Very Little Sense For Those Who Know What They're Doing.
Ignorance
Littles
Investing
The Banking Business Is No Favorite Of Ours. When Assets Are Twenty Times Equity - A Common Ratio In This Industry - Mistakes That Involve Only A Small Portion Of Assets Can Destroy A Major Portion Of Equity. And Mistakes Have Been The Rule Rather Than The Exception At Many Major Banks.
Mistake
Twenties
Banking
We Don't Have To Be Smarter Than The Rest. We Have To Be More Disciplined Than The Rest.
Intelligent
Successful Investing
Smarter
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