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Diversify your investment portfolio to mitigate risk and maximize returns from "summary" of Financial Freedom by Grant Sabatier
To maximize the growth of your investment portfolio and minimize the chances of losing your hard-earned money, you need to spread your investments across different asset classes. This strategy, known as diversification, is crucial to reduce the overall risk of your portfolio. By diversifying, you can potentially increase your returns while also protecting yourself from the impact of a downturn in any one sector or asset class. When you invest in a single asset class or industry, you are putting all your eggs in one basket. If that sector experiences a decline or a market correction, your entire portfolio could suffer significant losses. Diversification helps to mitigate this risk by spreading your investments across various types of assets, such as stocks, bonds, real estate, and comm...
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