🧺 Risk & Diversification

Risk means things might not go the way you hope. In investing, risk means you could end up with less than you started with. Higher possible reward usually comes with higher risk.

Diversification means spreading pretend money across different kinds of companies — technology, food, entertainment, energy, education, health, environment. Don't put all your eggs in one basket. 🧺

Diversification can help manage risk, but it cannot remove risk. There is no such thing as a risk-free investment.