Stay diversified from "summary" of The Bogleheads' Guide to Investing by Taylor Larimore,Mel Lindauer,Michael LeBoeuf
Diversification is a fundamental principle of investing that helps manage risk. By spreading your investments across different asset classes, you can reduce the impact of a downturn in any one sector. This means not putting all your eggs in one basket, but rather in multiple baskets. The idea is simple: if one basket falls, the others can help support it. The concept of diversification is grounded in the notion that it is impossible to predict the future with certainty. By holding a variety of investments, you can protect yourself against unforeseen events that may impact the performance of any single asset. This approach smoothes out the bumps in the road and provides a more consistent long-term return. Maintaining a diversified portfolio doesn't mean owning...
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