Diversification is important in investing from "summary" of Rich Dad's Prophecy by Robert T. Kiyosaki,Sharon L. Lechter
In the world of investing, diversification is crucial. This means spreading your investments across different asset classes, industries, and geographical regions to reduce risk. By diversifying, you are not putting all your eggs in one basket. If one investment performs poorly, the impact on your overall portfolio will be minimized because you have other investments that may perform well. Diversification is important because it helps protect your wealth from the unpredictability of the market. No one can accurately predict how a particular investment will perform in the future. By diversifying, you are hedging your bets and increasing your chances of overall success. It's like having a safety net to catch you if one of your investments fails. Another benefit of diversification is that it allows you to take advantage of different market conditions. For example, wh...
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