Warren Buffet said, "Diversification makes very little sense for anyone that knows what they’re doing." He also said, "Diversification is a protection against ignorance..." Most of us need that protection against ignorance, yet diversification often makes us feel bad when some of our holdings don't do as well as others. We make the case why we should diversify anyway. Topics covered: Warren Buffet says it's crazy to own more than 30 stocks, but Berkshire Hathaway owns 48 stocksWhat does it mean to analyze a businessHow have U.S. stocks performed relative to non-U.S. stocks long-termWhat has driven the outperformance of U.S. stocks and what has to happen for it to continueWhat are examples of diversification plays just in case the U.S. falters For more information on this episode click here. Show Notes Warren Buffett and Diversification—GrahamValue.com The Complete Berkshire Hathaway Portfolio by John Divine U.S. News The Business Cycle Is Different Than The Economic Cycle - Crestmont Research EU Natural Gas—Trading Economics Related Episodes 254: Should You Be 100% Invested In Stocks? 275: Are You Over Diversified? 364: Should You Hedge Your International Stock Exposure Against Currency Fluctuations? Sponsor Masterworks – invest in contemporary art See important Regulation A disclosures at masterworks.io/cd    Since inception, Masterworks has sold six paintings from the collection. IRR is net of all fees and expenses and is presented on a deal-weighted basis, which assumes the same investment amount was made in each applicable offering. In certain cases, Masterworks may concede its fees and/or profit sharing in connection with the sale of a painting for the benefit of the shareholders. Net IRR was calculated assuming all fees and profit sharing to which Masterworks was entitled were charged to the issuer. IRR on sold artwork is not indicative of Masterworks’ overall performance or future results. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

We explore examples of positive and negative unintended consequences, what causes them, and how to navigate a world where unanticipated things happen all of the time. Topics covered include: What leads to unintended consequencesWhat are some unintended consequences of QE and stimulus, price controls, tax incentives, gun legislation, and marijuana legalizationHow positive unintended consequences and order can arise from the bottom upHow recent climate legislation could lead to unintended consequencesWhy customers don't always know what they want For more information on this episode click here. Episode Sponsors LinkedIn – Post your job for free Show Notes Large rent increases squeeze metro Phoenix tenants by Associated Press—The Journal Record Unintended Consequences by Karras Lambert and Christopher J. Coyne The Seen, the Unseen, and the Unrealized: How Regulations Affect Our Everyday Lives by Per L. Bylund Norway reconsiders electric car privileges by Chris Randall—electrive.com More Guns, More Unintended Consequences: The Effects of Right-to-Carry on Criminal Behavior and Policing in Us Cities by John J. Donohue, Samuel Cai, Matthew Bondy, and Philip J. Cook Marijuana Legalization and Fertility by Sarah Papich Japan’s latest alcohol advice: please drink more by Leo Lewis and Kana Inagaki—Financial Times The Poverty of Historicism by Karl Popper How the New Climate Bill Would Reduce Emissions by Nadja Popovich and Brad Plumer—The New York Times Democrats Designed the Climate Law to Be a Game Changer. Here’s How. by Lisa Friedman—The New York Times Economists’ Statement on Carbon Dividends; The Largest Public Statement of Economists in History—Climate Leadership Council Why We Don't Have a Carbon Tax by Paul Krugman—The New York Times Lean Startup and the Business Model: Experimentation Revisited by Teppo Felin, Alfonso Gambardella, Scott Stern, and Todd Zenger Related Episodes 158: How To Invest Like A Cockroach 236: How Investors Cope With Radical Uncertainty See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.