SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/teen-invest-diversify

What does diversification mean in investing?

Don't put all your eggs in one basket.

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  1. Buying only one stock
  2. Spreading money among various investments ✔
  3. Selling everything

Why: Spreading your money across different investments means a loss in one may be offset by gains in others.

Huh, didn't know that: Investor.gov sums diversification up as a strategy of not putting all your eggs in one basket.

The dad joke
Why did everyone warn the man who wanted to put all his money into a whipped cream factory? They thought it was a huge whisk.
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References

Answer: Spreading money among various investments. Spreading your money across different investments means a loss in one may be offset by gains in others.

  1. Investor.gov: Diversification www.investor.gov/introduction-investing/investing-basics/glossary/diversification
    Diversification is a strategy that can be neatly summed up as "Don't put all your eggs in one basket."
    Checked 2026-10-10.

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