German engineer and electric car enthusiast Alex Avoigt posted on social media today mocking Bill Gates for adopting a strategy of financial diversification after becoming friends with Buffett, which ironically caused him to lose a significant amount of potential wealth. Alex Avoigt stated:
However, this statement drew criticism from Ethereum co-founder Vitalik Buterin, who accused Alex Avoigt’s remarks of being bad advice and provided four practical financial recommendations for the public:
Diversification is good.
Save money. Strive to have enough savings to cover expenses for many years. Financial security equals freedom.
Keep the majority of your portfolio conservative.
Do not use leverage of more than 2 times. Absolutely do not.