Jasmine
VIP Contributor
Your entire life you are taught about diversifying your investment. They will tell you to diversify to minimize your risks. You are told if you keep your 10 eggs in 10 baskets and if eggs on 5 baskets are broken, you will still have eggs in 5 extra baskets. If you keep all 10 eggs in one baskets, you might lose all eggs if the basket drops from your hands.
However, you might not realize, investing in a single asset or a business. Apple is the most valuable company in the world. After gold, Apple Inc. has the biggest market share. Apple is not doing a lot of business, it only has one niche that is electronics.
How did Elon Musk become wealthiest man on earth? You don’t see him diversifying his business. His all businesses are more or less on the same niche.
But why do they tell you invest in multiple assets? Who benefit when you make multiple investments?
The answer might surprise you. Form this concept of diversifying, the stock exchange and the companies trading in stock exchanges benefit.
However, you might not realize, investing in a single asset or a business. Apple is the most valuable company in the world. After gold, Apple Inc. has the biggest market share. Apple is not doing a lot of business, it only has one niche that is electronics.
How did Elon Musk become wealthiest man on earth? You don’t see him diversifying his business. His all businesses are more or less on the same niche.
But why do they tell you invest in multiple assets? Who benefit when you make multiple investments?
The answer might surprise you. Form this concept of diversifying, the stock exchange and the companies trading in stock exchanges benefit.