Don't put all your eggs in one basket
When making investment or risk management decisions
Understanding the Rule
This investment wisdom advocates for diversification—spreading your resources, investments, or efforts across multiple options rather than concentrating everything in one place. It's about managing risk by not being completely dependent on a single outcome.
What Happens When You Break It
Lack of diversification leads to catastrophic losses when things go wrong, financial ruin from single points of failure, missed opportunities in other areas, and vulnerability to circumstances beyond your control.
Benefits of Following This Rule
Diversification reduces overall risk, provides stability during turbulent times, creates multiple income streams, protects wealth, offers more opportunities for success, and provides peace of mind.