Business Quote by John Maynard Keynes
“It is a mistake to think that one limits one’s risk by spreading too much between enterprises about which one knows little and has no reason for special confidence.”
About This Quote
Source Book: The General Theory of Employment, Interest and Money, 1936
Diversifying into unfamiliar ventures does not reduce risk if you lack knowledge and confidence, emphasizing the need for informed investment.
In simple terms: Spreading money into unknown areas doesn’t lower risk without expertise.
Key Takeaway
Invest where you understand.
Themes
investment
risk
knowledge
Mood
analytical
pragmatic
Type
economic
financial
When to use this quote
- stock market
- business expansion
- personal finance
Key Concepts
portfolio diversification
expertise reliance
financial strategy
Questions to Reflect On
- Do you understand what you invest in?
- What knowledge do you need before diversifying?
A Different Perspective
Diversification without insight can increase exposure.
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