Diversification Strategy Supported by Experts

By in Asset Allocation, Economics, Investing, Mutual Funds, Stocks | 6 comments

Economists and Financial Experts on Investing Diversification Strategy with Index Funds & Links

In preparing for my Top Investing Strategies for Long-Term Wealth; Investing Trends for You and Your Readers presentation at this years Fincon 2013 conference I created a list of investing quotes. I’m one of those people who likes to confirm my investing  theses with the experts, professionals, and current academic research. Not one to gloat, but it’s nice to have Nobel prize winners and great investors supporting my investing approach.

fincon im speaking 8_13

Although there are no lack of investment product sellers in the marketplace, stick with the “tried and true” investment methods. You’ll spend less time managing your portfolio and more time living.

Diversification Strategy with Index Funds Recommended by Nobel Prize Winners, Economists, and Top Investors

Enjoy these investing quotes from the top minds in the investing world.

“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” Paul Samuelson

“The individual investor should act consistently as an investor and not as a speculator.” Ben Graham 

“If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks.” John, founder of Vanguard and the index fund

“Investors should always keep in mind that the most important metric is not the returns achieved but the returns weighed against the risks incurred. Ultimately, nothing should be more important to investors than the ability to sleep soundly at night.” Seth Klarman

“Most of my investments are in equity index funds.” William F. Sharpe, Nobel Laureate, Economics, 1990 

“Most individual investors would be better off in an index fund.” Peter Lynch

So investors shouldn’t delude themselves about beating the Market? “They’re not going to do it. It’s just not going to happen.” Daniel Kahneman, Nobel Laureate in Economics, 2002

Barbara Recommends

Professional Investing Websites

Jemstep Blog- How Much Should I Have Saved for Retirement by Age 55?

Bloomberg.com-Fama’s Work Shows Active Managers Fated to Lose

Investing Answers-5 Ways You Can Get Income From Your Portfolio Right Now (Miranda Marquit)

Personal Finance Blogs

Get Rich With Me-Writing a Spending Plan

The Student Loan Sherpa-A Revolution in College Costs

Consumer Fu-Insider Tips; Buying on Ebay

Debt Discipline-Happy Holidays

Family Money Values-What Can Your Bank do for You?

The Frugal Toad-Turn Your Skills into Part Time Income and Work from Home

Barbara Across the Web

I’m a Whole New Man Without a Beard Round up: Amateur Financier
Carnival of Wealth hosted by Control Your Cash
Earn More Spend Less hosted by Student Loan Sherpa
Yakezie Carnival hosted by Rather Be Shopping
Carnival of Money hosted by Carnival of Money
Festival of Frugality hosted by Clever Dude

Where do you get your investing inspiration and information?


  1. I used a form of diversification to shield me from stock market volatility. My choice was investing in a few sectors.


    October 18, 2013

  2. In my retirement account we have a bunch of nice target date funds which spread your risk out over a bunch of different stocks and bonds so you are alot more diversified and hopefully better protected on the downside, although more limited on the upside if one sector gets hot.


    October 19, 2013

  3. I diversify by investing in index funds across different asset classes. I stay away from sector funds since they can be volatile. Thanks for the mention Barb!

    Paul @ The Frugal Toad

    October 20, 2013

  4. I enjoyed those quotes! There is much we can learn from people who have achieved great success, and they often have a knack for sharing knowledge in succinct and interesting quotes.

    Stocks do go up and down, and people need to be prepared for this – along with the reality that if many managers aren’t able to consistently beat the market then how can an individual investor with little serious experience expect to do so.


    October 21, 2013

    • @Squirrelers, So glad you enjoyed the quotes. I too am inspired by how well the successful investors and economists can say so much with so few words. The data are so helpful in guiding our investing direction. Trying to beat the market is just setting yourself up for disappointment.

      Barbara Friedberg

      October 22, 2013

  5. @Krantc, The Potatoe, and Paul, Sounds like you have all giving your investing strategies some thought. As we are nearing a market high in terms of valuation, it’s important to remember how volatile stock and bond assets can be and be mentally prepared. (As well as broadly diversified.

    Barbara Friedberg

    November 6, 2013

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