“Diversification is protection against ignorance. It makes little sense if you know what you are doing”

Simplified Meaning:

If you know exactly which investments will do well, putting your money in different places is not necessary. For example, if you are very skilled at picking good stocks, you don't need to spread your money around to stay safe. However, most people aren't experts, so they spread their investments to lower the risk of losing money. It's like not putting all your eggs in one basket. If one basket falls, you still have other baskets with eggs. For everyday life, it's saying that if you're really good at something and confident in your choices, you might focus on that one thing. But if you're unsure, it's better to have a few options to protect yourself from losses.