Difference between revisions of "Diversification"
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| + | 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."<ref>[https://www.collinsdictionary.com/us/dictionary/english/diversification Diversification - Collins Dictionary]</ref> | ||
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== Diversification for investing == | == Diversification for investing == | ||
Revision as of 14:53, January 28, 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
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]
Diversification for a business
Diversification is a risk-reduction strategy for a business involving adding products, services, locations, customers and markets to your business's portfolio.[3]
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 “Don Quixote”, where it was written “It is the part of a wise man to keep himself today for tomorrow, and not venture all his eggs in one basket.”[7]
See also
External links
- Diversification, Investopedia
- The Importance of Diversification, Investopedia
- The Importance Of A Diversified Economy, Amarillo Economic Development
- 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