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Building a diversified portfolio is essential for longterm success from "summary" of Passive Income, Aggressive Retirement by Rachel Richards
When it comes to investing for the long term, one of the key principles to keep in mind is the importance of building a diversified portfolio. This means spreading your investments across different asset classes, industries, and geographic regions. The idea behind diversification is to reduce risk by not putting all your eggs in one basket. By diversifying your portfolio, you can protect yourself from the ups and downs of individual investments or sectors. Diversification is essential for long-term success because it helps you weather market volatility and economic fluctuations. For example, if you have all your money invested in one industry and that industry experiences a downturn, your entire portfolio could suffer. On the other hand, if you have a diversified portfolio that includes investments in different industries, ...
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