The Trade-Off Between Diversification and Knowledge
And when to make big bets.
A version of this article was published in the July 2014 issue of Morningstar ETFInvestor. Download a complimentary copy here.
Diversification is often treated as an unalloyed good. It's not. The more I learn, the more I appreciate that Warren Buffett said something as perfect as can be about the subject: "Diversification is protection against ignorance."