Jim Rogers: Diversification a Scam

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, says commodities bull Jim Rogers.

"Henry Ford never diversified, Bill Gates didn't diversify," Rogers told Business Week.

"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."

Rogers notes that many diversified investors have lost huge sums of money over the past couple of years and advises investors to stick with what they know and forget about competing with Warren Buffet.