Life With No Limits!

As a college student, George studied very hard and he was burning midnight oil almost every night. So late that he overslept one morning arriving 20 minutes late for class. When he reached the class, he quickly copied the two math problems on the board, assuming that the questions were his homework assignment.

Surprisingly, the 2 questions given were really tough and it took George several days to work through the 2 problems. Finally.. He had a breakthrough and dropped the homework on the professor’s desk the next day.

Later, on a Sunday morning, George was awakened at 6am by his excited professor. Since George was late for class, he hadn’t heard the professor announced that the 2 unsolvable equations on the board were mathematical mind teasers that even Albert Einstein hadn’t been able to answer. But George Dantzig working without any thoughts of limitation, had solved not 1, but 2 problems that had stumped mathematicians for thousands of years.

How Did George Managed To Solve The Problems?
Well, George solved the problems because he didn’t know he couldn’t!

Are There Any Reasons to Diversify?

Many financial gurus often advises that diversification is used by people to protect themselves against their own ignorance. They noted that if you know what you are doing, you should concentrate your portfolio into equities as they achieve the highest return. And you can achieve low risk not by simply spreading your money around, but by your competence of knowing which funds and stocks to pick. In fact, if you have read the latest chapter of Conspiracy of the Rich by Robert Kiyosaki, there was a paragraph that goes:

‘If you listen to most financial pundits, they will always say that smart investors diversify. Yet, to quote Warren Buffett in The Tao of Warren Buffett, “Diversification is a protection against ignorance. It makes very little sense for those who know what they are doing.”‘

If this investment concept was preached years ago, well, probably the financial gurus are right!

Let’s look at the unimaginable market of today!