Diversification: don't bet the house on one horse

The only 'free lunch' economists actually agree on.

Concept

Spreading risk without giving up return

Diversification is holding many different investments so that no single loss can sink you. Done right, it reduces overall risk without proportionally reducing expected return. That's why it's called the closest thing to a free lunch in finance.

Educational content only — not personalized investment, legal, or tax advice.