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The Importance of Diversifying Your Portfolio How many times have you heard that proverb? probably hundreds. But do you know where it comes from? It originates from Don Quixote, a two-part classic by Cervantes that was written between 1605 and 1615. The whole quote is as follows: Saving for the future and not putting all of his eggs in one basket are the responsibilities of a wise man. Nice, eh? As you can see, it is a saying that has stood the test of time. However, you might be asking how this relates to trading and investing. Plenty. It is indeed one of our guiding concepts for trading courses for beginners at Investment Mastery. One of our laws? Are you for real? Not in the least, no. Let's "break" it down. Think of the "eggs" as the money you plan to invest, and the "basket" as the stock or Cryptocurrency you want to purchase. What would happen if you placed all of your "eggs" (money) in one "basket" (stock or Cryptocurrency), and that basket then unexpectedly collapsed, breaking all of the eggs into smithereens? They would be useless to you at that point, wouldn't they? If you invest and reinvest your gains each year, our compound interest calculator will show you how much your money will increase over time. In other words, the funds would be lost forever. You effectively face the danger of losing all of your money if you put all of your eggs in one basket. You may laugh or you might cry now that you've lost all your eggs. Out of sorrow. (Which, given Don Quixote, is kind of appropriate, a literary classic romantic tragi-comedy.)


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