Diversify Or Not?
Posted by Su Sheng Loong on 02 May 2008 at 11:10 am | Tagged as: Entrepreneurship
If you are a big fan of Warren Buffett, you should know that he always advocates the idea of not putting all the eggs in a basket. As the current richest man in the world, Warren Buffett advises people not to diversify when investing in the stock exchange market. Many well-known entrepreneurs, such as Donald Trump, also advise people to focus on just one task and not to do too many thing at one time.
To many people, they think that it is safe to diversify. Even my Business Studies textbook also states that diversifying is safer as it can spread the risk over a wide range of investment. Personally, I myself have some doubts in this topic. Well, I absolutely agree with what Donald Trump said that we should always focus on one task until its success. If one task cannot be completed, how are you going to succeed in the next project or task?
I have once faced with this problem. To be more precise, I have always faced with this problem when learning about building my business. I keep talking to myself, “come on, you have got to FOCUS!”. Nevertheless, whenever I find a new business opportunity, I will get very excited and somehow not able to focus on my initial project. I thought that if I have more businesses done at one time, the success rate will be higher. According to Mathematics, it could be right but when you talk about real life business, this is 100% bull shit. My success rate will be even lower if I am not focusing enough!
However, I do have confusion when I come across this issue. While Warren Buffett claims that it is unwise to diversify, why would he own shares and companies from various industries? If I am not wrong, Warren Buffet owns Nestle, Coca-cola, EA Games and many other not so related companies. Does it mean that Buffet himself is not focusing enough?
After doing few research, I come out with a conclusion. My conclusion is that rich people like Warren Buffett actually focus in the initial stage when they started building their business empire. As one business is stable on its own, they only will diversify and start another unrelevant business. So can I say that we should not ALWAYS focus?
If you like reading my blog, please support me by buying me a Starbuck coffee so that I can use its Internet connection to update my blog. Lol!Related Entries
If you enjoy reading my blog, please subsribe to my RSS feed via email updates.
I think it’s safe to say this…
“It depends on the person undertaking the task, some people are good at juggling multiple task at once, but some are only good at concentrating on one project at a time”
Some of the businessmen don’t really own a core business, you agree? They are just investing… They invest in this share, then that share, and goes on, earning a lot of money.
Some have a core business, like Bill Gates which is Microsoft.
So, I think we should all find the best way for ourselves to do what we want to do… whether it is multi-tasking or just concentrating on one thing at a time.
But yea, I agree, don’t place all eggs in a basket.. Did u notice that the billionaire ranking has change a lot this time? Many people ranking dropped.. Most of them are actually investors in real estate. Currently, real estate price drop, so, they lost a lot of money in their investments…
hehe.. just my two cent opinion…
cya…
Wow, what you said really impresses me. You seem to have greater knowledge in investing than me.
Although Bill Gates has its core business, he also invests in some other businesses in the form of shares. For example, he also invests in Facebook and other companies.But he is not in charged of the management of the companies that he invests.
Sheng Loong.
Hahaha…
I think u know wayyyyy more than me!!
if i really kno so much, then i sudah rich liao lor!! hahaha…
gosh!!! the founder of facebook is the youngest billionaire!!! sienz dao!!! hahahaha.. really envy dat guy la…
btw.. i just notice we got same surname.. =P
haha cya…
good luck in exam!!!
PS:
rather disappointed wif Nuffnang recently, they have been very particular wif who gets the ads, not like last time, almost everyweek oso got ads come into everybody’s blog, now only certain ppl got… now my blog only got that silly word “I serve Nuffnang” only… mana duit mau datang wor?! hahaha..
then hor, i remove advertlet ady, coz if u have other ads on the same blog, then nuffnang pay very little per click… big difference lor… anyway, advertlet punya pay very low oso wan… last time i check hor, i got like RM0.001!!! really za dao… dat kind of money can use de meh?! hahaha… is google ads pay good ah? roughly how much per click ah?
Hi Teddy,
I am always learning about making money from blog. However, making money from blog is quite tough. It requires a lot of consistency and persistence.
Mark Zukerberg, Facebook founder is also one of my role models in Internet Entrepreneurship. He is by far the youngest billionaire in the world.
The reason I prefer Adsense over Nuffnang and Advertlet is that Adsense is owned by Google and they pay you in USD. Let’s compare RM1 with USD1. There is a vast difference when you have a large amount of pending commission.
Sheng Loong
Oh.. Google pay in USD de.. hehe..
yea, money thru blogging is not easy, i read in an article by a malaysian blogger, i think it was paul tan, he writes about cars wan…
blogging money very unstable, it depends a lot on clicks, sometimes can get thousands per month, sometimes only hundreds…but i think as side income is ok la.. hehe…
i dont quite like google adsense coz i think their ad very ugly leh.. only words saja… like the one u have down at ur page.. hehehe =P
Nuffnang got graphic graphic.. hehhee…
Make money blogging is certainly not easy. But it could bring you consistent income every month. I will write about few probloggers who earn steady income from their blog in the upcoming posts.
I knew Paul Tan from a podcast interview. He owns the most popular automobile blog in Malaysia.
Well, the income source of blogging can be in many other forms. Other than pay-per-click, there are various type of monetization methods.
Google has got graphic advertisement banner as well. I have pulled down the Nuffnang advertisement and put on the Google adsense if you notice it.
Oh ya, the thing at the side is Google de.. hehe..
U really know a lot about internet business leh!!
i onli know pay-per-click,n pay-per-impression (depends on unique visits).. hehe…
I think u can come out wif a manual for internet business liao
=P
Actually I do not really know much compared to the real professionals in the Internet business field.
I will write about Internet business in my blog since I really love it very much!
Well, I will definitely write a book on how to do Internet business if I really succeed in it.