Get all cash out of the bank

[TheHeathens]

Heathens you're a waffler. You're waffling to divert attention from the crux.I don't appreciate your snide comments either, about my education. You either want to debate properly or you want to waffle.

You stated that diversification is good. I say not necessarily. In other words it might be or it might not be. If I invest in the heroin industry in 3 countries is that good? If I invest in 1 or 2,3,4,5 pubs(diversification) and they all fail is that good?

Now you say that people should know that the government was going to bring in the smoking ban. How do they know? Because they did it in other countries? Why do you think countries have their own laws? They don't always follow suit.

The reason you advocate diversification is precisely because of the above. You don't know what's going to happen next. If you did you'd invest in one company. The most successful one.

To make this clear to anyone interested in this debate, I'll prove my point: If you invest in three companies and we'll assume for the sake of argument, they're all successful. In that case it's very unlikely they'll all succeed to the same degree. Therefore you didn't make the right decision, because if you'd invested in one(the most successful) you'd have got a bigger return than diversifying in three.

Diversification is for gamblers. Like people who play roulette and put five one pound chips on each square, in the belief that that, is better than placing one five pound chip on one square. It's called gamblers fallacy.

For god's sake! Where did I make snide comments about your education!?

If it was the 'you don't understand', do you remember this:

Am I to take this seriously? ..... You clearly don't understand gold's status in the market

[sarcasm]Did you notice the word 'general' or 'fund.'[/sarcasm] Sounds like the welfare state.

And you still clearly don't get diversification. Investing in 5 different pubs is not true diversification because they correlate far too closely. It was fairly obvious to me that it would only be a matter of time before the smoking ban was brought in because we tend to follow the example set by America.

What has heroin got to do with it? I must have missed that Heroin Exchange Traded Fund, or have you been investing in the physical stuff because that's what it seems like.

If you can afford to go and risk all of your money on one company, then go and do it. You may get better returns but if it goes tits up then don't say I didn't warn you. It's called Risk v Reward and I've already covered it in this thread.

Now you've not said anything new, so we'll leave it there shall we.

[Stolly]

Chucking in my twopence worth, I too am a financial adviser . Theheathens explanation may be long winded but its bang on the money. Think of diversification as improving the odds but lowering the maximum payout. Betting on black in roulette is a more 'diversified portfolio' than betting everything on zero

[Fleeter]

Bloody Hell,glad i have a life

[Grouse]

Me too. What the feck are they on about?

[dominion]

Me too. What the feck are they on about?

Basically Grouse....

You give me your pebbles and then I give them (less a few that I keep for myself) to someone else. They then spend your pebbles on "stuff" that they then sell on for hopefully more than they bought the "stuff" for. They then give me those pebbles (less a few that they keep for themselves) back to me and I give them back to you (less a few that I keep for myself).

It's easy, we're all guaranteed to make money and you take the risk that you might not get any pebbles back.

[Mud]

Basically Grouse....

You give me your pebbles and then I give them (less a few that I keep for myself) to someone else.

Can I give you my pebbles to invest?

Well I say my pebbles. I actually stole them from some workers...

[dominion]

Can I give you my pebbles to invest?

Well I say my pebbles. I actually stole them from some workers...

Pebble laundering?

[Grouse]

Oh. Oh.

[Grouse]

I had to write it twice because it said the message was too short.

[Margarine]

Grouse you are a bird of very little brain.