Quote from: beetcoin on December 08, 2013, 09:07:08 PM

Quote from: BlackBison on December 08, 2013, 09:02:02 PM

Quote from: Herp on December 08, 2013, 01:52:45 AM

You can just take some off the table and diversify into stocks or something. Rare earths or 3d printing are some interesting alternatives.

Diversification is protection against ignorance. It makes little sense if you know what you are doing.

― Warren Buffett

even if you are know what you are doing, nothing is guaranteed. you could end up losing your entire savings. if you are a professional investor, i guess the case would be different (ie: warren buffet).

No it wouldn't be actually. It was the same Warren Buffett who said that if someone handed him a revolver with 1 bullet he would never pull the trigger regardless of how much money he could make. There's still a chance you could lose everything. He was talking about Solomon and how those guys lost everything because they thought were smarter than they were.

Just look at the recent debacle involving boy genius arrogant Bill Ackman who got fried for thinking he was unbeatable and got wiped out basically on the Herbalife and JC Penney deals.

I don't believe you should diversify into dozens of places, but you shouldn't bet the house on just one horse no matter how good the odds. People make mistakes and no one can foresee the future.