They could fund their grandchildren’s retirements on the money they earned from a single stock position. In all likelihood, you’re more likely to lose big than win out when it comes to picking the hot stock. It’s pretty clear here how risky putting all of your financial stability in the hands of a single company can be. This means businesses like yours are likely to have their stocks drop at the same time as your own company’s do. If you decide that my argument above isn’t enough to diversify, you should at least be sure that the returns you’re getting offset the amount of risk you’re taking by investing in a single stock.

Source: Forbes March 19, 2019 21:56 UTC