Tags: jim rogers | invest | diversify | wall street

Jim Rogers: Wall Street Wrong, 'Put All Your Eggs in One Basket'

Jim Rogers: Wall Street Wrong, 'Put All Your Eggs in One Basket'

(AP)

By    |   Friday, 16 December 2016 07:46 AM

International investor Jim Rogers warns savvy market connoisseurs to ignore the Wall Street credo of spreading your chips across the entire gambling table.

"I know that people are taught to diversify. But diversification is just that's something that brokers came up with, so they don't get sued," Rogers told Truewealth Publishing.

"If you want to get rich... You have to concentrate and focus," he says. "The expression on Wall Street is, don't put all of your eggs in one basket. Ha! You should put all of your eggs in one basket. But be sure you've got the right basket and make sure you watch the basket very, very carefully," the Economic Times quoted him as saying. 

"If you don't get it right, you're going to lose everything. But if you get it right, you're going to get very rich. And, by the way, don't think it's easy getting it right. It's not easy. It takes a lot of insight and work and everything else. But, if you get it right, you'll be very rich," he said.

Rogers is far from the only respected economic voice to caution about picking the right strategic to make money in the market.

Meanwhile, Vanguard Group's founder and former CEO Jack Bogle says were are “in the middle of a revolution” with index investing.

Vanguard Group's founder and former CEO started the indexing revolution for retail investors in 1976 when he launched the Vanguard 500 Index Fund. The fund, which just passed its 40th anniversary, had $205 billion in assets as of Aug. 31.

Index investing is commonly defined as purchasing shares of an index fund. Index investing requires less research because it is an investment in all of the securities in an index. This is different from investing in mutual funds because mutual funds can be comprised of multiple stocks from different indexes, as opposed to index investing which deals with multiple stocks trading on the same index.

“What’s clear is we’re in the middle of a revolution caused by indexing," Bogle told Bloomberg. "It’s reshaping Wall Street, it’s reshaping the mutual fund industry. And it’s doing something very simple: shifting the allocation of stock market returns away from Wall Street and toward Main Street. We’re beyond the beginning, but nowhere near the end,” Bogle said.

(Newsmax wire services contributed to this report).


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International investor Jim Rogers warns savvy market connoisseurs to ignore the Wall Street credo of spreading your chips across the entire gambling table.
jim rogers, invest, diversify, wall street
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2016-46-16
Friday, 16 December 2016 07:46 AM
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