Page 86 - Intelligent Investing (3)

Diversification

In order to protect your capital you must diversify your investments

Ever heard the expression “Don’t put all your eggs in one basket”

It’s always good to have a few investments to balance ups/downs in the market

When the real estate market takes a hit it won’t hurt McDonald's profits

And when the news is bashing Tesla and your shares lose value have other

investments that can pull the weight while 1 investment is dipping

Remember, every pick isn’t a winner. No one is right all the time about everything

Spread the risk around and limit your losses and increase your gains safely

Pick a few well researched companies you can hold long term