"Una cartera altamente no diversificada te expone a un riesgo mucho mayor pero también genera un retorno mucho más alto"
— Nassim Nicholas Taleb
Simplified Meaning:
Putting all your money in just one or two investments can be very risky because if those investments fail, you could lose everything. For example, if you only invest in the stock of one company and that company goes bankrupt, you'll lose your investment. But if that company does really well, you might make a lot of money in a short period. It's like gambling - the potential reward is high, but so is the chance of losing. On the other hand, spreading your money across different investments, like various types of stocks, bonds, and real estate, can reduce the risk. If one investment fails, the others might still do well, balancing things out. It's safer, though the rewards might not be as big or as fast. In life, this idea means not putting all your efforts or hopes into one thing but diversifying to protect yourself from big losses. For example, instead of relying only on one skill or job, learn various skills to have more job opportunities and stability.
