Diversification is key to reducing risk from "summary" of John Bogle on Investing by John C. Bogle
Diversification is a fundamental principle that every investor should adhere to. By spreading your investments across a variety of asset classes, you can reduce the overall risk of your portfolio. This strategy helps to protect you from the negative impact of a single investment's poor performance. Imagine that you have all your money invested in a single stock. If that stock suddenly declines in value, you could stand to lose a significant portion of your wealth. However, if you had diversified your holdings across multiple stocks, bonds, and other assets, the impact of that decline would be less severe. Diversification is not about trying to pick winners and losers in the market. Ins...
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