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Diversify your investments from "summary" of The Only Investment Guide You'll Ever Need, Revised Edition by Andrew Tobias
The key to successful investing is to spread your risk among different types of investments. If you put all your money into one stock, you're taking a big chance. If that stock tanks, so does your entire investment. But if you spread your money among a variety of investments, you reduce the risk that any one investment will drag down your entire portfolio. This concept is known as diversification. By diversifying your investments, you can potentially increase your chances of making money while also reducing your overall risk. Think of it like putting your eggs in different baskets. If one basket falls, you still have other...
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