Definition
In finance, the prudent strategy of spreading your investments across multiple assets so you can lose money in several different ways simultaneously instead of just one. It's the investing equivalent of not putting all your eggs in one basket, which sounds wise until you realize you now have twelve baskets to worry about. Portfolio managers love to brag about how diversified they are, right up until everything crashes at the same time anyway.
Example Usage
My portfolio is well diversified across tech stocks, crypto, and NFTs—which means I'm fully exposed to three different flavors of speculative bubble.
Source: Investment and portfolio management terminology
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See “diversified” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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