Difference between revisions of "Diversification"
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According to Investopedia, "Diversification is a risk management strategy that creates a mix of various investments within a portfolio. A diversified portfolio contains a mix of distinct asset types and investment vehicles in an attempt to limit exposure to any single asset or risk."<ref>[https://www.investopedia.com/terms/d/diversification.asp Diversification], Investopedia</ref> | According to Investopedia, "Diversification is a risk management strategy that creates a mix of various investments within a portfolio. A diversified portfolio contains a mix of distinct asset types and investment vehicles in an attempt to limit exposure to any single asset or risk."<ref>[https://www.investopedia.com/terms/d/diversification.asp Diversification], Investopedia</ref> | ||
| − | Articles on diversification for investing: | + | '''Articles on diversification for investing:''' |
*[https://www.investopedia.com/terms/d/diversification.asp Diversification], Investopedia | *[https://www.investopedia.com/terms/d/diversification.asp Diversification], Investopedia | ||
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*[https://www.investopedia.com/investing/importance-diversification/ The Importance of Diversification], Investopedia | *[https://www.investopedia.com/investing/importance-diversification/ The Importance of Diversification], Investopedia | ||
| − | == Diversification for a business == | + | *[https://www.fool.com/investing/how-to-invest/portfolio-diversification/ Understanding Portfolio Diversification] |
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| + | == Diversification and personal/business income == | ||
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| + | ''See also:'' [[Multiple streams of income]] | ||
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| + | [[Multiple streams of income]] is an [[economic]] concept that is applied to either personal or [[business]] use whereby the person or business entity seeks multiple sources for [[income]] that have some level of separateness so that in the event that one stream "dries up", the other sources will continue and prevent a catastrophic situation from occurring. | ||
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| + | == Revenue diversification for a business == | ||
''See also:'' [[Revenue diversification and businesses]] | ''See also:'' [[Revenue diversification and businesses]] | ||
Diversification is a risk-reduction strategy for a business involving adding products, services, locations, customers and markets to your business's portfolio.<ref>[https://www.tradecommissioner.gc.ca/guides/spotlight-pleins_feux/spotlight-diversification-pleins-feux-diversification.aspx?lang=eng Spotlight – Market Diversification]</ref> | Diversification is a risk-reduction strategy for a business involving adding products, services, locations, customers and markets to your business's portfolio.<ref>[https://www.tradecommissioner.gc.ca/guides/spotlight-pleins_feux/spotlight-diversification-pleins-feux-diversification.aspx?lang=eng Spotlight – Market Diversification]</ref> | ||
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| + | '''Articles on revenue diversification for a business:''' | ||
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| + | *[https://web.archive.org/web/20210310022157/https://www.forbes.com/sites/melissahouston/2021/03/04/the-importance-of-revenue-diversification-in-business/?sh=2eb10d712b4e The Importance Of Revenue Diversification In Business], Forbes | ||
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| + | *[https://web.archive.org/web/20230530015106/https://www.forbes.com/sites/melissahouston/2023/05/24/empower-your-business-by-diversifying-income-streams/?sh=6e3a621e4864 Empower Your Business By Diversifying Income Streams], Forbes | ||
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| + | *[https://web.archive.org/web/20230606221217/https://www.forbes.com/sites/williamcraig/2015/04/24/business-diversification-the-risk-and-the-reward/?sh=f35147c7d09c Business Diversification: The Risk And The Reward], Forbes | ||
== Diversification for an economy == | == Diversification for an economy == | ||
Latest revision as of 14:20, February 18, 2024
According to Collins Dictionary, Diversification is "the act or practice of manufacturing a variety of products, investing in a variety of securities, selling a variety of merchandise, etc., so that a failure in or an economic slump affecting one of them will not be disastrous."[1]
Diversification for investing
See also: Diversification and investing
According to Investopedia, "Diversification is a risk management strategy that creates a mix of various investments within a portfolio. A diversified portfolio contains a mix of distinct asset types and investment vehicles in an attempt to limit exposure to any single asset or risk."[2]
Articles on diversification for investing:
- Diversification, Investopedia
- The Importance of Diversification, Investopedia
Diversification and personal/business income
See also: Multiple streams of income
Multiple streams of income is an economic concept that is applied to either personal or business use whereby the person or business entity seeks multiple sources for income that have some level of separateness so that in the event that one stream "dries up", the other sources will continue and prevent a catastrophic situation from occurring.
Revenue diversification for a business
See also: Revenue diversification and businesses
Diversification is a risk-reduction strategy for a business involving adding products, services, locations, customers and markets to your business's portfolio.[3]
Articles on revenue diversification for a business:
Diversification for an economy
- The Importance Of A Diversified Economy, Amarillo Economic Development
Quotes
"Diversification has been, and balance, like Wellington, has been so drummed into me, it's part of my personality." - John C. Bogle, American investor, business magnate, and philanthropist[4]
"I've always been a big believer in diversification for anybody. It's never good to put all of your efforts and all of your time and all of your financial resources into just one project. Diversification is key for any individual and any business." - Paul Heyman[5]
"The starting point for energy security today as it has always been is diversification of supplies and sources. - Daniel Yergin, American author, speaker, energy expert, and economic historian[6]
"Don't put all your eggs in one basket" - Popular saying. The phrase is said to be first used in the novel âDon Quixoteâ, where it was written âIt is the part of a wise man to keep himself today for tomorrow, and not venture all his eggs in one basket.â[7]
See also
External links
- Economic diversification and the resiliency hypothesis: Evidence from the impact of natural disasters on regional housing values, Reg Sci Urban Econ. 2020 Nov; 85: 103581. Published online 2020 Aug 30. doi: 10.1016/j.regsciurbeco.2020.103581