Ever heard that adage that goes “don’t put all your eggs in one basket”? Well, that right there is the brainchild of diversification.
Diversify actually originates from a Latin word “Diversus” that loosely translates to distribution, variety, spread or even stretch.
Nothing is certain, especially when business is concerned but having a diverse investment portfolio puts you at an advantageous position. Expanding your reach boosts your chances of success in the ever changing world of business and society at large.
As a sport lover, you might find that you have exclusive interest in say, soccer despite the plethora of sport activities in existence. Thus, limiting yourself to knowledge and consciousness of one sport when you can derive pleasure from a bunch of others like Basketball or baseball. Diversifying your interest gives you variety and more means of excitement.
Investment and business is no different. The biggest risk in life is not taking risk but having a varied investment portfolio means that you spread your risk among various entities of your choice. This means you’re taking a calculated risk in a variety of assets/entities, rather than sticking to just one, leading to an increased potential of earning.
In an article by MARKETSNACKS called “Why diversify”, the author discusses that though diversifying is not a promise of success, it reduces the potential damage that could arise from rigidity in investment.
Creating a diversified portfolio requires planning and careful execution. You can achieve a lot simply through spreading your investment tentacles and clinging on to a variety of opportunities just waiting to be grabbed. With that said and might I add, some luck on your side, you’re on your way to the land of positive results.
“The only investors who shouldn’t diversify are those who feel they are right 100% all the time.” – Sir John Templeton.
Those people feel their knowledge about things are always accurate, which leaves them not doing what should be done, it’s better to take risks by getting things done than not taking any at all.
Diversify and intensify, that’s the future.
References: http://www.dictionary.com
http://www.investopedia.com
https://www.fidelity.com/learning-center/investment-products/mutual-funds/why-diversify
Life is all about risk
Take the needful risk
Life is all about risk, if u don’t take a risk u won’t reach your destination.
Even though it may be rough and risky, it will get better at the end.
Spread your risk and be optimistic of the outcome.
Interesting topic. Events in life are always changing. U have to take risks and diversify efforts for greater rewards… Greatness is never achieved without risk.
We often say, the greatest risk is not taking a risk at all. It will be risky not taking a risk at all. So the best risk is to take risks.
There is a saying on the street that says “Take the risk and join the billionaires” well that’s right in an actual sense ,most times you have to take risk in order to attain a certain level..Nice one Bella👍
This is quite an interesting topic but it is well neglected especially by the youths, because not all of us are financially aware as much as we are when it comes to trivial issues on entertainment/gossips.
Even, it is advised in Ecc 11:2- invest in seven ventures, yes, in eight; for you do not know what disaster may come upon the land.
But I think the one thing which deters most of us that has the knowledge of this principle from applying it is being “scammed” considering the kind of environment we have found ourselves in today.
Ponzi has created a big scar in some of us that makes us to relent in taking financial risks, but nevertheless, the fear of bullets doesn’t stop a war. So, we keep moving. It is the risk that gives the experience.
you have to take risk in order to make it in life.
U are right baby girl…don’t put all ur eggs in one basket is like planning for d future….don’t eat with all ur fingers 😍😍😍😍more wisdom nd understanding dear
life itself is a big risk,so to achieve the smallest stuffs require risk taking .
Yes sir/ma. Life is a risk, almost everything existing on planet earth is a product of the risks somebody else took.
The risk can be spread in all spheres of life.
In terms of relationship. People often fear heartbreaks because it can lead to loneliness and decision to stay single, zeroing your mind while taking risk will keep your heart open for anything to come whether positive or negative, thats why it’s called “Risk” you will never end up disappointed if you’re aware of whatever risk you’re spreading.
The risk you spread will not only give you better chances of dusting yourself and moving on, it will give you the ability to make better decisions and feel better afterwards because you took the risks.
This principle can also be applied in project management. A person could spread their risk by getting more people to partner with them to pull resources together in order to achieve a specific goal – this is also used in crowd funding, and it frees one from the financial burden and the risk of bearing all the loss in the event of any disaster.
This sort of reasoning is particularly important in the world of cryptocurrency.