Diversify your investment portfolio from "summary" of The Automatic Millionaire Workbook by David Bach
When it comes to investing, it's important to spread your money across different types of assets. This is known as diversification. The idea behind diversifying your investment portfolio is to reduce risk by not putting all your eggs in one basket. By spreading your investments across various asset classes, you can potentially minimize the impact of a downturn in any one area. Diversification can be achieved by investing in a mix of stocks, bonds, real estate, and other assets. Each of these asset classes has its own level of risk and return potential. By diversifying, you can potentially benefit from the strengths of each asset class while mitigating the weaknesses. When you diversify your investment portfolio, you also avoid the risk of losing everything if a single investment goes south. If you put all your money into one stock and that company goes bankrupt, you could lose everything. ...
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