ABSTRACT

Explanation. We previously commented on human proverbs, bits of wisdom coming from human experience and passed down through the generations. “Don't put all your eggs in one basket” is a familiar example. We all know that it is risky to put all your money in one stock or all your business in one product or service. Yet, we very often ignore the warning because one can often make more money specializing, at least in the short term. Over the long term, however, we usually find that our future and our fortune are safer with diversification.