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Why Diversify?

When in doubt, spread it out.

Sarah Newcomb 31 December, 2019 | 10:08

Imagine you put all of your savings into the stock of a company that is researching cancer, and then the cure is found…

...by a competitor who owns the patent.

Or, imagine going all-in with your buddy’s new business venture and it folds after a year. Or you decide to put all of your savings into wind power and geothermal ends up taking over the market. Any time you put all of your money in one place, you make yourself entirely dependent on how that one investment performs.

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About Author

Sarah Newcomb

Sarah Newcomb  Sarah Newcomb is a behavioral economist with Morningstar.

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