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Don't put all your eggs in one basket from "summary" of The Smartest Investment Book You'll Ever Read by Daniel R. Solin
The concept of spreading your investments across different asset classes is a fundamental principle of prudent investing. By diversifying, you reduce the risk of a significant loss in the event that a particular investment underperforms. This concept is often summarized by the saying, "Don't put all your eggs in one basket."Imagine if you invested all your money in a single stock, and that company suddenly declared bankruptcy. You would lose everything. However, if you had diversified your investments across a variety of stocks, bonds, and other assets, the impact of one failing investment would be minimized. Diversification allows you to participate in the potential upside of...
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