Although in general I disagree with proponents of diversification because such experts' advice usually involves overdiversification, this quote makes a good point of what can happen if you put all your eggs into one basket. As with anything else in life, prudent investing is about moderation and balance. Diversify, but don't overdiversify; have a concentrated portfolio, but don't put your eggs into one basket.
"Among the hazards of speculation the happening of the unexpected I might even say of the unexpectable ranks high. There are certain chances that the most prudent man is justified in taking chances that he must take if he wishes to be more than a mercantile mollusk. Normal business hazards are no worse than the risks a man runs when he goes out of his house into the street or sets out on a railroad journey. When I lose money by reason of some development which nobody could foresee I think no more vindictively of it than I do of an inconveniently timed storm. Life itself from the cradle to the grave is a gamble and what happens to me because I do not possess the gift of second sight I can bear undisturbed."
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