Owning one company means one accounting scandal, one lawsuit, one bad product cycle can take most of your money. Owning five hundred means no single failure matters much. You give up the chance of a spectacular outcome to remove the chance of a catastrophic one — and for money you actually need, that is a good trade.
Check yourself
Diversification mainly reduces…
Fees
The damage any single company can do to you correct
Market-wide drops
It does almost nothing for a broad crash — everything falls together. What it removes is company-specific catastrophe.
Learn this properly
This term has a full interactive lesson in Wick — the chart, the pattern to tap,
and a live practice terminal to try it on. Free to start.