In business and in investing, diversification is really important. And I’m sure you’ve all probably heard this concept before: “don’t put all your eggs in one basket.”
But what does that really mean and how do you do this in practice?
Well, let’s deep dive about how we do this in our business with real world examples. And let me start off by saying that when people think about diversification they tend to think about it in very simple terms, generally tied to a single action, such as if you’re buying stocks not buying all from the same company. And yes, that is correct in principle, but diversifying can go way beyond that.