In this episode of The Australian Finance Podcast we’re not just talking about diversifying your investments, we’re going to cover the importance of applying the principles of diversification to all areas of your financial life.
Diversification is the practice of investing across different asset classes with varying levels of risk and reward. By mixing different kinds of investments within your portfolio, you can reduce the likelihood of a single event (or underperforming asset class) damaging your returns.
The most common way of explaining diversification is with an analogy that’s tired but true: ‘Don’t put all your eggs in one basket’.
“The only investors who shouldn’t diversify are those who are right 100% of the time.”
– Sir John Templeton
