I’m sure you’ve heard many financial planners talk about diversification, and how it’s extremely important to not put all your eggs in one basket.
I got this pitch all the time from mutual funds salesmen. They would warm of the dangers of buying individual stocks because it doesn’t spread out the risk. Buy mutual funds with a diversified portfolio, they would scream at the top of their lungs.
In this episode of Driving with John Chow, I make the case that getting rich by diversification is BS. The only thing more BS are managed mutual funds, but that’s for a future rant.