Wealth Creation- Rule 11 ( Investment Diversification)

Wealth Creation- Rule 11 ( Investment Diversification)

If  you must create wealth then you should diversify your investment.

Just as innovation is important in business expansion so also is investment diversification important in wealth creation. For the fact that a particular business  is booming at a particular period  of time, that does not mean hard times will never surface.

I see diversification of  investment as a cushion for unforeseen hard times. Back then in my secondary school days,Economics as a subject made me to understand that one of the major purpose of saving money is for precautionary measures. A person who is ready to create wealth should not in any way put all his eggs in one basket. Rather  learn how to diversity your investment. This is because when you refuse to prepare for the unprepared, the unprepared prepares for you. Gone are those days where a term like monopolistic business exist. Competition has eroded such a term and so in order to stand the test of times you should. Cultivate and nurture the habit of diversifying your investment if and only if your venture has attained some level of success.

The economic recession that struck most countries did not affect most great-men that deep because they diversified their investment. Your ability to diversify your investment and still be  successful can make your cave a niche for yourself like “jack of all trade and master of all” unlike the usual “jack of all trade and master of none”. So go for diversification only when you are matured enough for it.This is because just as human needs keep changing and increasing so also do business opportunities keep changing and increasing. Besides, profit margins differ from business to business. A man may be in a business for years and not make enough profit compared to may be when he starts a new venture. So diversify, diversify and diversify.

Food for Thought: "Don’t put all your eggs in one basket".

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