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Traditional finance always stresses diversification as an essential strategy to reduce the risk in your portfolio. Warren Buffet, one of the most famous investors that

Traditional finance always stresses diversification as an essential strategy to reduce the risk in your portfolio. Warren Buffet, one of the most famous investors that ever lived, famously stated that "diversification is protection against ignorance. It makes little sense if you know what you are doing. Is there any merit in Buffets claim? Try to explain the benefits and drawbacks of diversification in a few paragraphs.

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