Views of the Insane on Diversification

“Building and staying with a broadly diversified portfolio is the only sane approach for long-term investors.”

I recently read this quote from Craig L. Israelsen, a Financial Planning contributing writer in Springville, Utah. Granted, I have never met, nor have I had any conversations with Mr. Israelsen, but he seems to be a competent professional. According to his bio, he is an executive in residence in the personal financial planning program in the Woodbury School of Business at Utah Valley University.  However, his statement still bothers me a bit, as he is saying that any other investment approach must be insane.

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