What Is Portfolio Diversification? A Plain-English Guide With Real Examples From Stock Advisor's Return History
Covering a lot of ground typically works in investors' favor.
Overview
Many people grew up hearing the phrase, "Don't put all your eggs in one basket." That applies to careers, skill sets, and your investments. Diversification is a pillar of investing because it minimizes risk and widens your investing net,
But what exactly does portfolio diversification look like? There's no single approach to diversification, but let's look at a straightforward one. It might not always be the coolest approach to investing, but it's time-tested and has been proven to work for the everyday investor.
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Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.