Spoiler alert: it doesn't mean having a bunch of accounts in a bunch of different places, making your life really difficult.
So diversifying means that you're using a variety of different holdings across a variety of different areas. (04:24)
...this is why when we spread things out, we're doing this because we don't want all of our investments to be dependent on how one area of the market happens to perform. (06:22)
If you have two people putting together separate first aid kits, "Hey, Bob, and hey, Jane, each of you guys design your own first aid kit and bring it on the ship with us", they're going to have no idea what the other person has already packed. (08:07)
Quote for the episode: "Do you have one advisor with a unified diversified strategy? Or do you have a lot of random first aid kits that may all just be packed with different brands of the same gauze?" (08:56)
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Accidents will happen in life so captain your ship or at least hire one!
"Yes", he replied, "the boat went past me first on its way towards you." "You were lucky it missed you. I wasn't so lucky." "Well," said the newcomer, "I saw that it might hit me so I moved out of the way." (01:51)
"Little by little, a little becomes a lot...plus compounding interest!" - paraphrasing a Tanzanian proverb
You get your first 401(k) statement that you threw a couple pebbles into and it essentially says you know, "well thanks for playing, but you still have pretty much nothing", right?...