Diversification can help reduce risk in a portfolio from "summary" of Common Stocks and Uncommon Profits by Philip A. Fisher
Diversification can help reduce risk in a portfolio by spreading investments across different asset classes, industries, and geographic regions. This strategy can help protect against unforeseen events that may impact a particular sector or market. By diversifying, investors can potentially minimize the impact of a single investment's poor performance on the overall portfolio. Furthermore, diversification can also help investors take advantage of opportunities in various sectors that may be performing well at different times. This approach allows investors to benefit from the potential growth of different industries without relying too heavily on the success of any one sector. In essence, diversification can help investors capture the upside potential of different areas of the market while mitigating the downside risk. It is...
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