Diversification

"Don't put all your eggs in one basket" - Popular saying.

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."

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."

Articles on diversification for investing:

• Diversification, Investopedia

• How Diversification Works, And Why You Need It, Forbes

• The Importance of Diversification, Investopedia

• Understanding Portfolio Diversification

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.

Articles on revenue diversification for a business:

• The Importance Of Revenue Diversification In Business, Forbes

• Empower Your Business By Diversifying Income Streams, Forbes

• Business Diversification: The Risk And The Reward, Forbes

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

"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

"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

"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.”

See also

• Multiple streams of income

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