What does the saying “Don’t put all your eggs in one basket” mean?

The Basics Read more from
Chapter Introduction to Personal Investing

It demonstrates the need for diversification. If you put all your investments in one stock, and the stock price falls, you lose a major amount of money. If you had put your money in three different stocks, and two of the three go up, and only one goes down, you could still have made money, or perhaps lose less money than if your investment was concentrated in one stock.


This is a web preview of the "The Handy Investing Answer Book" app. Many features only work on your mobile device. If you like what you see, we hope you will consider buying. Get the App