Thursday, September 15, 2011

Jack Bogle, diversification and idiots.

Finance Professor blog posts a video of Jack Bogle (the father of indexing) talking about indexing.

Jack is responding to Mark Cuban's recent claim that "diversification is for idiots".  I am sure Mark is a talented entrepreneur but being a entrepreneur requires taking undiversified risks.  Investing for your retirement is completely different - diversification is essential.  If Cuban doesn't realize this then he is the idiot here.