Diversification is protection against ignorance

We are often asked about different investments such as Japanese or Hong Kong stocks. We do not offer advice on these markets simply because we want to advise our clients on what we believe are the best investments of the moment. We always focus on a couple of investment types. Billionaire investor Warren Buffett en famously stated that "diversification is protection against ignorance. It makes little sense if you know what you are doing." We would not go as far as mister Buffett but there is some truth in this statement.