"The way to become rich is to put all your eggs in one basket and then watch that basket." - Andrew Carnegie

[The Sovereign Individual]

What do you think about this quote ?

Andrew Carnegie was a Scottish-American industrialist who led the expansion of the American steel industry in the late 19th century. During his lifetime, Andrew Carnegie had a peak, inflation-adjusted, net worth of $310 billion. That's enough to make him the 4th richest human being of all time.
Source : Andrew Carnegie Net Worth

 

[Golden Fleece]

There are a number of investment myths widely assumed to be irrefutably correct. Diversification is‌ one of them.

If you are an average investor, then proper diversification is usually a‍ wise choice. But if you are an astute and knowledgeable investor, you can become filthy⁠ rich by placing most of your wealth into a single investment when you are absolutely⁤ certain that you are correct. The film "The Big Short" proves Andrew Carnegie correct.

https://en.wikipedia.org/wiki/The_Big_Short_(film)

 

[Mercury]

Are you referring to Dogecoin? smi(&%

 

[Golden Fleece]

No, I said "you can‌ become filthy rich by placing most of your wealth into a single investment when you‍ are absolutely certain that you are correct." That is a reasoned decision based on⁠ superior knowledge of the market.

No one can legitimately say that they are absolutely certain⁤ that they are correct in regard to any crypto speculation. Moreover, by its very nature,⁣ crypto is a speculation, not an investment, so you would never place all your eggs⁢ in one basket in regard to a mere speculation.

 

[troubled soul]

I believe in 7 sources of income. Rather than put in one Basket.
I believe‌ most wealthy people and media/book literature show us a half-truth.
Nobody can have a single‍ source of income (One basket Investment).
If you look into their portfolio deeply. You will⁠ surprise. (Who claim they have only one investment)

The world is very uncertain. Nobody can⁤ predict what will happen in the future?
Better to diversify your portfolio.

 

[Mercury]

What you wrote doesn't apply⁤ only with crypto (which is obviously a risky investment for way higher potential returns), it⁣ is valid with any kind of markets and anything in life. Even with the best⁢ probability/stats rates nobody can predict that an event will happen with 100% certainty.

Recent example︀ is Covid: because of an improbable but possible event, a lot of people worldwide are︁ losing their business/life savings.

How/When can you be absolutely certain that you are 100%︅ correct? Do you have a workable crystal ball? If so, please share!

 

[JohnLocke]

It is the exact opposite of what everyone else say, and also the old saying,‌ never put all your eggs in the same basket 🙂

I don't know, would never do‍ it regardless if it is this guy, Warren Buffett or any other so called Guru.⁠ I trust my own feelings.

 

[Golden Fleece]

Like I said, watch "The Big Short." Some financial︀ events are a near certainty and they can make you filthy rich.

But such a︁ strategy is not for the faint of heart -- and the exact timing is usually︂ the main problem, which can create problems with psychology, willpower, and solvency.

The one thing︃ that you can count on in life is mass stupidity. Be sure to be on︄ the other side of that trade. 😉

 

[12345]

Better to decide on your own than listen to business guru even if it is‌ Bill Gates, usually they don't tell what they really think but try to create good‍ image of themselves. Personally I prefer conservative approach and not put all eggs in 1⁠ basket

 

[JohnLocke]

That is the general issue with all speculation.

 

[Golden Fleece]

I would like to see the context of that quote by Andrew Carnegie.‍ It likely applied to owning your own business over which you have total control. That⁠ is how most people get very wealthy, i.e., their own business or real estate.

He certainly did not mean a speculation and likely did not mean your average investment.

 

[luckycriminal]

That's it.

I believe it varies depending industry, context, etc.:
You can⁣ diversify with stocks or crypto, if you have enough money, or you can buy only⁢ BTC since it is the ''safest''.
But with business or other goals trying to achive︀ many things will burn mental capital and conecntration, therefore achieving less, simplicty is key: ''The︁ man who chases two rabbits, catches neither''.

As everything, there's no black or white, you︂ just have to try out different things and see how it turns out for you,︃ before trying out get enough info and past experiences to make better decisions too.

 

[Golden Fleece]

That is not correct. A speculation can be short-term, medium-term, or long-term. So can investments.‍ The defining characteristic between the two is risk, not the hold period.
https://www.investopedia.com/terms/...e world︀ of finance,gain or other major value.
For example, plenty of people are holding crypto long-term︁ and yet it is most definitely a speculation. They could lose all their crypto wealth︂ tomorrow, or at any point in the future, under a wide variety of different circumstances.︃

 

[khinkali]

I don't think it has to be either one or the other.

Let's look at some⁢ Factor Analysis on “Women Track Records”. It's very difficult to be good at both︀ the 100m sprint and the marathon. This should not be surprising.

On the other hand︁ if you don't have some big Alpha discovery and you want to protect your assets,︂ then listen to Ray Dalio:





Personally I say if you're 20 years old and you︃ have a lot of energy, concentrate your efforts to maximise your chance of success. If︄ you're nearing retirement and you do not want to risk losing your capital, go with︅ Ray Dalio.

 

[Golden Fleece]

Some of the best financial (and life) advice you will ever get, from the film‌ "The Gambler" --

 

[fortunespeculator]

I think speculating with the pareto principle is the right idea .You speculate with 20%‌ of your net wealth.That should give you 80% of your returns.