How can spreading your money out help?

My Next Move

If you’ve read Don Quixote you already know that diversifying is a no-brainer. According to Sancho Panza, "It is the part of a wise man to keep himself today for tomorrow, and not venture all his eggs in one basket." In this week’s episode of the financial podcast series, My Next Move, Michael Liersch tells us that not putting all your eggs in one basket is particularly sage advice when it comes to matters involving money. It’s usually smarter to spread your finances over multiple holdings. Having a single (or a very small number) of financial interests can be dangerous, whether it be a stock or a business interest or even a home. Simply put, you could lose everything, even if it’s just on paper, and it could be for extraneous reasons. It may have nothing at all to do with the quality of that single holding. Michael asks us to consider doing what most financial experts recommend: having several, or even many holdings or investments instead of just one or two. Or, to reframe that old cliché, you just might want to put your eggs in lots of baskets.