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DIVERSIFICATION

investing wednesday word of the week Aug 14, 2018

Definition

A risk-reduction method by which you spread your assets among many different investments.

Why It's Important

In the event of a downturn in the market, having sufficient diversification can help you not take too much of a hit.  It is pretty much the adage, "Don't put all your eggs in one basket"!

What to Diversify?

  • Your Marketing and Business Strategy
  • Your Personal / Agency / Companies Portfolio
  • Your Employed Capital into separate, well versed investments. (Which helps "diversify" the risk

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