Why bother with diversification?

So, why should I bother with diversification? The person best equipped to answer that question migh...

So, why should I bother with diversification? The person best equipped to answer that question might be a 64-year-old who had invested their life's savings in WorldCom shortly before it became the biggest-ever corporate bankruptcy in 2002. Let us hope for their sake they do not exist. It basically comes down to that old adage about eggs and baskets. If you own one stock, you lose everything if that stock goes bust. If you own 100 stocks, they are highly unlikely all to go bust at once, and if one of them does fail, you have a smaller proportion of your wealth tied up in it. It's just ab...