Many investors seem to have forgotten a hard reality: There are frequent periods when stock markets don't do much.

Diversification is something that stock brokers came up with to protect themselves, so they wouldn't get sued for making bad investment choices for clients. Henry Ford never diversified, Bill Gates didn't diversify. The way to get rich is to put your eggs in one basket, but watch that basket very carefully. And make sure you have the right basket.

Many investors seem to have forgotten a hard reality: There are frequent periods when stock markets don't do much.

One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do. Most people – not that I’m better than most people – always have to be playing; they always have to be doing something. They make a big play and say, “Boy, am I smart, I just tripled my money.” Then they rush out and have to do something else with that money. They can’t just sit there and wait for something new to develop

I don`t think I own any US stocks, if I do its very few, so few I can`t even remember.

Tough times helped many commodities traders become lean and mean through consolidation, mergers and cost cutting. All that excess supply has been sopped up.

Bottoms in the investment world don't end with four-year lows; they end with 10- or 15-year lows.