Diversify your investment portfolio from "summary" of Beating the Street by Peter Lynch
When it comes to investing, it's important to spread your bets across different areas. This strategy, known as diversification, can help protect your portfolio from significant losses in case one sector or stock performs poorly. By not putting all your eggs in one basket, you reduce the risk of a single bad investment dragging down your entire portfolio. Diversification can take many forms, including investing in different industries, countries, or asset classes. The goal is to have a mix of investments that are not highly correlated, so that when one goes down, another may go up. This can help smooth out the overall performance of your portfolio and reduc...
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