Spread yourself out, but not too thinly

By Richard Livingston
Updated August 17 2014 - 10:23am, first published August 1 2014 - 2:46pm
According to Wikipedia diversification means "reducing non-systemic risk by investing in a variety of assets" Photo: Rebecca Hallas
According to Wikipedia diversification means "reducing non-systemic risk by investing in a variety of assets" Photo: Rebecca Hallas

Financial advisers prattle on about the benefits of diversification but not everyone knows exactly what it means, which is a bit of a problem when you’re talking about a fundamental investing principle.
According to Wikipedia, diversification means "reducing non-systemic risk by investing in a variety of assets" or, more colloquially, "don’t put all your eggs in one basket".