Diversification protects against unexpected downturns. By holding a wide range of assets, buy affiliated managers shares investors avoid catastrophic losses.
Owning only tech giants like Apple, Microsoft, Nvidia may seem attractive, but when technology falls, risk becomes concentrated.
Adding consumer staples (Coca-Cola, Nestlé) protects against downturns. Global exposure with Toyota, Samsung, Alibaba adds new opportunities.
ETFs such as Vanguard Total World Stock ETF let investors access thousands of companies.
Ultimately, diversification helps compound steadily. A portfolio with U.S. giants, European leaders, and Asian innovators reduces volatility.
