“The only way to guarantee success in the stock market is to diversify your portfolio.”

Simplified Meaning:

Investing in the stock market can be risky because you never know how each company will do in the future. Putting all your money into just one company is like putting all your eggs in one basket - if that company fails, you could lose everything. Instead, it's smarter to spread your money across different companies and industries. This means if one company does poorly, the others might still be doing well, which protects you from losing all your money at once. Think of it like a buffet: if you're not sure what food will be good, you take a little bit of everything. If one dish isn’t tasty, you still have other food to enjoy. By having a mix of investments, you reduce the risk of losing your money and increase your chances of some investments doing well. This way, you're more likely to see success overall, even if some parts of your portfolio don’t perform well.