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Diversification is important for risk management from "summary" of The Intelligent Investor, Rev. Ed by Benjamin Graham
Diversification is a key principle in managing investment risk. By spreading your investments across a variety of assets, you can reduce the impact of a single investment's poor performance on your overall portfolio. This strategy is based on the idea that not all investments will move in the same direction at the same time. By holding a mix of different assets, you can potentially offset losses in one area with gains in another. Diversification is important because it helps to protect your portfolio from the inherent uncertainty of the market. No one can predict with certainty how any one investment will perform, so spreading your investments can ...
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