Diversification is key to managing risk from "summary" of The Psychology of Money - Gujarati Edition by મોર્ગન હાઉઝેલ
Diversification is an essential principle when it comes to managing risk in your investment portfolio. It involves spreading your investments across different asset classes to reduce the impact of any one investment performing poorly. By diversifying, you can help protect yourself from significant losses that may occur in a single investment. When you put all your money into one investment, you are essentially putting all your eggs in one basket. If that investment performs poorly, you could lose a significant portion of your capital. Diversification helps to mitigate this risk by ensuring that your portfolio is not overly reliant on the performance of any single asset. By diversifying you...
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