By: rapidtips On: April 05, 2019 In: Comments: 0

The story of Eggs and Basket

You might have heard that “Don’t put all your eggs in one basket.” If that basket drops, they could all break, & also ruining your breakfast! This proverb is very popular in the world of stock market because it helps us to understand the importance of portfolio diversification.
But the fact is that, instead of following this proverb, people are using Mark twain’s approach, that is we are putting everything into one large basket, hoping and praying that we don’t trip, or that nothing bad happens to the global economy, either of which could tumble down your eggs.