Do not put all your eggs in one basket?
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Oliver Wilson
Works at the International Organization for Standardization, Lives in Geneva, Switzerland.
As a subject matter expert in finance and risk management, I can provide a comprehensive explanation of the phrase "Do not put all your eggs in one basket."
This idiom is a metaphor that suggests diversifying risk, particularly in the context of investments. It means that one should not concentrate all their resources or efforts in one area, as this could lead to significant losses if that area fails. Instead, spreading investments across various assets or sectors can mitigate the risk of a single failure impacting the whole portfolio.
The principle behind this advice is to reduce the overall risk by not relying on a single investment. Diversification is a key strategy in financial planning and investment management. It helps to protect against market volatility and unforeseen events that could negatively affect a concentrated investment.
In essence, the saying encourages a balanced approach to investing, where one's financial resources are allocated in a way that minimizes the potential for large losses.
This idiom is a metaphor that suggests diversifying risk, particularly in the context of investments. It means that one should not concentrate all their resources or efforts in one area, as this could lead to significant losses if that area fails. Instead, spreading investments across various assets or sectors can mitigate the risk of a single failure impacting the whole portfolio.
The principle behind this advice is to reduce the overall risk by not relying on a single investment. Diversification is a key strategy in financial planning and investment management. It helps to protect against market volatility and unforeseen events that could negatively affect a concentrated investment.
In essence, the saying encourages a balanced approach to investing, where one's financial resources are allocated in a way that minimizes the potential for large losses.
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Studied at the University of California, Berkeley, Lives in Berkeley, CA, USA.
Meaning: This is a piece of advice which means that one should not concentrate all efforts and resources in one area as one could lose everything. Example: Mr Tan's financial adviser urged him to be careful and not put all his eggs in one basket by investing all his money on stocks.
2023-04-14 09:46:57
Mia Davis
QuesHub.com delivers expert answers and knowledge to you.
Meaning: This is a piece of advice which means that one should not concentrate all efforts and resources in one area as one could lose everything. Example: Mr Tan's financial adviser urged him to be careful and not put all his eggs in one basket by investing all his money on stocks.
