--- title: "Meaning & Key Takeaway of: Here is part of the tradeoff with…" description: "\"Here is part of the tradeoff with diversification. You must be diversified enough to survive bad times or bad luck so that skill and good process can h..." image: "https://sms4smile.com/quotes/i/b1b/joel-greenblatt-21588_bad-luck_here-is-part-of-the-tradeoff-with-divers_851506.png" --- # Here is part of the tradeoff with diversification. You… ![“Here is part of the tradeoff with diversification. You must be diversified enough to survive bad times or bad luck so that skill and good process can have the chance to pay off over the long term.” quote by Joel Greenblatt](https://sms4smile.com/quotes/i/b1b/joel-greenblatt-21588_bad-luck_here-is-part-of-the-tradeoff-with-divers_851506.png) [Download](https://sms4smile.com/quotes/i/b1b/joel-greenblatt-21588_bad-luck_here-is-part-of-the-tradeoff-with-divers_851506.png) [Open image](https://sms4smile.com/quotes/i/b1b/joel-greenblatt-21588_bad-luck_here-is-part-of-the-tradeoff-with-divers_851506.png) > “Here is part of the tradeoff with diversification. You must be diversified enough to survive bad times or bad luck so that skill and good process can have the chance to pay off over the long term.” [Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Diversification must be sufficient to survive downturns, allowing skill and process to eventually yield returns. **In simple terms:** Diversify enough to survive bad times. Key Takeaway Balance risk and skill. Themes risk management diversification long-term skill Mood analytical pragmatic Type financial strategic When to use this quote - investment strategy - financial planning - career development - entrepreneurship Key Concepts portfolio theory compound growth process discipline Questions to Reflect On - What is your optimal diversification level? - How do you protect your core competencies? A Different Perspective Over‑diversification can dilute returns. ★ ★ ★ ★ ★ No ratings yet [Bad luck](https://sms4smile.com/quotes/about/bad-luck/) [Bad times](https://sms4smile.com/quotes/about/bad-times/) [Chance](https://sms4smile.com/quotes/about/chance/) [Customer](https://sms4smile.com/quotes/about/customer/) [Diversification](https://sms4smile.com/quotes/about/diversification/) [Diversified](https://sms4smile.com/quotes/about/diversified/) [Long term](https://sms4smile.com/quotes/about/long-term/) [Luck](https://sms4smile.com/quotes/about/luck/) [Process](https://sms4smile.com/quotes/about/process/) [Skills](https://sms4smile.com/quotes/about/skills/) [Time](https://sms4smile.com/quotes/about/time/) ## Related quotes > [I started digging and found that Israel signed a peace treaty with the United Arab Emirates after the country had diversified their economy, instead…](https://sms4smile.com/quotes/shai-agassi/i-started-digging-and-found-that-israel-signed-a-peace-treaty-with/) [Shai Agassi](https://sms4smile.com/quotes/author/shai-agassi/) > [We're non-diversified. We focus. Why not buy more of your best idea rather than your 60th best idea? 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Otherwise, they're not really active. They…](https://sms4smile.com/quotes/eugene-fama/the-problem-that-people-don-t-understand-is-that-active-managers/) [Eugene Fama](https://sms4smile.com/quotes/author/eugene-fama/) > [It is sort of boring to stay in the same spot. You know, I didn't set out to become the first to do this,…](https://sms4smile.com/quotes/barbra-streisand/it-is-sort-of-boring-to-stay-in-the-same-spot-you-know-i-didn-t-set/) [Barbra Streisand](https://sms4smile.com/quotes/author/barbra-streisand/) > [It's 1450 out of 1500 ETF funds that I just wouldn't touch because they're not diversified enough. Or they have some huge speculative twist…](https://sms4smile.com/quotes/john-c-bogle/it-s-1450-out-of-1500-etf-funds-that-i-just-wouldn-t-touch-because/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [Part of the reason Loewe has diversified into so many other categories is because what we can't do any more is simply say, 'Here's…](https://sms4smile.com/quotes/jonathan-anderson/part-of-the-reason-loewe-has-diversified-into-so-many-other/) [Jonathan Anderson](https://sms4smile.com/quotes/author/jonathan-anderson/) > [There's probably been very few people in comedy that have a diversified background as I do.](https://sms4smile.com/quotes/ron-shock/there-s-probably-been-very-few-people-in-comedy-that-have-a/) [Ron Shock](https://sms4smile.com/quotes/author/ron-shock/) > [It always seemed, and still seems, ridiculously simple to say that if one can acquire a diversified group of common stocks at a price…](https://sms4smile.com/quotes/benjamin-graham/it-always-seemed-and-still-seems-ridiculously-simple-to-say-that-if/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [I believe investors should invest for the long run, so I don't buy and sell. I usually maintain the classic index of global equities,…](https://sms4smile.com/quotes/nouriel-roubini/i-believe-investors-should-invest-for-the-long-run-so-i-don-t-buy-and/) [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) > [“Our lives are so diversified, internal attitudes so varied, appearances and capabilities so different, that there is no possible classification so catholic that it…](https://sms4smile.com/quotes/zora-neale-hurston/our-lives-are-so-diversified-internal-attitudes-so-varied-appearances/) [Zora Neale Hurston](https://sms4smile.com/quotes/author/zora-neale-hurston/) > [E.Biscom is an Internet company that is diversified, not a diversified company that is trying out the Internet.](https://sms4smile.com/quotes/silvio-scaglia/e-biscom-is-an-internet-company-that-is-diversified-not-a-diversified/) [Silvio Scaglia](https://sms4smile.com/quotes/author/silvio-scaglia/) > [Our belief is that it is a basket of well-diversified companies that are playing the Internet, but are not direct Internet companies.](https://sms4smile.com/quotes/john-zimmerman/our-belief-is-that-it-is-a-basket-of-well-diversified-companies-that/) [John Zimmerman](https://sms4smile.com/quotes/author/john-zimmerman/) > [“stay diversified, keep expenses low, have a plan, save and invest early and often.”](https://sms4smile.com/quotes/alex-frey/stay-diversified-keep-expenses-low-have-a-plan-save-and-invest-early/) Alex Frey ## More by Joel Greenblatt > [Figure out what something is worth and pay a lot less.](https://sms4smile.com/quotes/joel-greenblatt/figure-out-what-something-is-worth-and-pay-a-lot-less/) [Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/) > [We are busy surviving, herding, fixating on what just happened, and being overconfident!](https://sms4smile.com/quotes/joel-greenblatt/we-are-busy-surviving-herding-fixating-on-what-just-happened-and/) [Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/) > [ There's a clarity that comes with great ideas: You can \[easily and simply\] explain why something's a great business, how and why it's cheap,… ](https://sms4smile.com/quotes/joel-greenblatt/there-s-a-clarity-that-comes-with-great-ideas-you-can-easily-and/) [Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/) > [The secret to investing is to figure out the value of something - and then pay a lot less.](https://sms4smile.com/quotes/joel-greenblatt/the-secret-to-investing-is-to-figure-out-the-value-of-something-and/) [Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/) > [Remember, it’s the quality of your ideas not the quantity that will result in the big money.](https://sms4smile.com/quotes/joel-greenblatt/remember-it-s-the-quality-of-your-ideas-not-the-quantity-that-will/) [Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/) > [“Perhaps, since the measurement of potential gain and loss from a particular stock is so subjective, it is easier, if you are a professional…](https://sms4smile.com/quotes/joel-greenblatt/perhaps-since-the-measurement-of-potential-gain-and-loss-from-a/) [Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/) > [It just seems logical that sticking to investing in only a small number of companies that you understand well, rather than moving down the…](https://sms4smile.com/quotes/joel-greenblatt/it-just-seems-logical-that-sticking-to-investing-in-only-a-small/) [Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/) > [I wait until an investment idea is so good, it hits me over the head like an anvil.](https://sms4smile.com/quotes/joel-greenblatt/i-wait-until-an-investment-idea-is-so-good-it-hits-me-over-the-head/) [Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/) > [“When thinking about risk, rather than making things unnecessarily complicated, there are really two main things you should want to know about an investment…](https://sms4smile.com/quotes/joel-greenblatt/when-thinking-about-risk-rather-than-making-things-unnecessarily/) [Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/) > [“Graham figured that always using the margin of safety principle when deciding whether to purchase shares of a business from a crazy partner like…](https://sms4smile.com/quotes/joel-greenblatt/graham-figured-that-always-using-the-margin-of-safety-principle-when/) [Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/) > [I think the exercise of trying to figure out how to simplify concepts has been incredibly helpful to me over the last 13 years…](https://sms4smile.com/quotes/joel-greenblatt/i-think-the-exercise-of-trying-to-figure-out-how-to-simplify-concepts/) [Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/) > [Choosing individual stocks without any idea of what you're looking for is like running through a dynamite factory with a burning match. You may…](https://sms4smile.com/quotes/joel-greenblatt/choosing-individual-stocks-without-any-idea-of-what-you-re-looking/) [Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/) > [If you spend your energies looking for and analysing situations not closely followed by other informed investors, your chance of finding bargains greatly increases.](https://sms4smile.com/quotes/joel-greenblatt/if-you-spend-your-energies-looking-for-and-analysing-situations-not/) [Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/) > [I still believe that for good business analysts a concentrated portfolio is a good strategy combined with a long term horizon. 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