Home » Dictionary » diworsification


 n.Gloss: Diversifying one’s investments too much. «Diworsification refers to the fact that you can diversify too much. For example, if you own one company’s stock you could potentially hit it big, but you could also lose it all. If on the other hand, you owned 100 companies (in equal weight) and one company went bust or doubled overnight, the net impact to your portfolio is only +/- 1%. Further, if you owned 1,000 stocks and one company either tanked or doubled, the effect on your portfolio is only +/- 0.1%.» —“A “diworsified” portfolio: Being too diversified” by Preet Banerjee Stockhouse Aug. 8, 2008. (source: Double-Tongued Dictionary)

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Further reading

Life of Riley (episode #1533)

Unwrap the name of a candy bar, and you just might find a story inside. For instance, one chewy treat found in many a checkout lane is named after a family’s beloved horse. And: 50 years ago in the United States, some Latino elementary...

Off the Turnip Truck (episode #1532)

It’s hard to imagine now, but there was a time when people disagreed over the best word to use when answering the phone. Alexander Graham Bell suggested answering with ahoy! but Thomas Edison was partial to hello! A fascinating new book about...