What Is Portfolio Diversification? A Plain-English Guide With Real Examples From Stock Advisor's Return History
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. Image source: Getty Images. Continue reading