Any investor knows not to put all of his or her “eggs” into one basket, or all of your money into one fund or stock account. If all of your funds are in one stock, the risk is great that the one stock account could go down and you would lose all of your money. If you spread your investments out into many different funds or accounts, if one account goes bad, it does not create drastic adverse affects on your total funds. The losses and the gains will balance out and as long as the economy is going well, your money will grow. I find it is useful to apply the same philosophy in our daily lives.
