Diversify your investments to minimize risk from "summary" of Rich Dad's Guide to Becoming Rich Without Cutting Up Your Credit Cards by Robert T. Kiyosaki
When it comes to investing, I always remember the importance of spreading my money across different types of investments. This is what we call diversification. By diversifying my investments, I am able to spread out my risk and minimize the impact of any one investment performing poorly. Imagine if all of my money was invested in just one stock. If that stock were to suddenly plummet in value, I would stand to lose a significant portion of my investment. However, if I had spread my money across multiple stocks, bonds, real estate, and other investments, the impact of one underperforming asset would be less severe. Diversification is not about trying to hit a home run with every investment. Instead, it's about playing defense and ensuring that my overall po...
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