Investing Basics: Diversification for Dummies
One of the principle concepts of investing, diversification, is often misunderstood by the very people who need most to understand it. So let’s “dummify” diversification. A lot of investors think diversification is owning a lot of stocks, and that’s not wrong on the face of it. But let’s start with a simpler metaphor: Don’t put all your eggs in one basket.