NOMISMA

Diversification

分散 / diversification — Measuring

The practice of holding different types of assets rather than concentrating on a single one.

Merovingian gold tremissis Merovingian gold tremissis6th–7th century Silver denier of Charlemagne Silver denier of Charlemagne794 onward
A photograph of what this word names.

The principle that if one asset fails, the entire portfolio is not lost. ⚠ Dividing assets among things that are identical in substance but different in name does not constitute diversification. Observe what moves in tandem.