Gracia Gilreath, Chapter 7, Question 6

I thought the passage on diversifying was interesting because when making investments, a person shouldn't invest all their money in one thing, but many so that they have a greater chance of ending with a greater outcome. However, selecting what to invest in is important because if by chance you invest in two separate companies that make the same type of products and one does poorly, it is very likely that the other will too. By investing in other companies, which are completely different you have a better chance of gaining than losing from you investment. In fact, it is very unlikely that you would not benefit from at least one of your investments if they were spread out in the correct way.