I’m sure that I first heard the expression “Don’t put all your eggs in one basket” well over seventy years ago. This concept of spreading risk can apply in so many fields but none more appropriate than in investing.
A well-chosen investment portfolio is a perfect example of how risk spreading can be simply achieved by following the rule of diversification.
The managed fund industry followed the example of our two oldest LISTED INVESTMENT COMPANIES (LICs) – Australian Foundation Investment Company Ltd, aka AFIC, and Argo Ltd, the oldest of which was established 93 years ago.
If you’re inclined to make your money work for you by investing in the share market – that is by investing in one or more profit-making enterprises – and you have NOTHING else better to do, then by all means spend the hours or days or even weeks researching your investment decisions.
Otherwise I think it’s a good idea to let professionals do the work for you.