Finance · Interview · 7 min · 20.09.2026 11:15
Risk and diversification for personal money
Diversification reduces the damage from one bad story. It does not promise a profit.
Risk here is the spread of outcomes: how far the result can move away from the average. It is not simply a “dangerous feeling.”
If all of your savings sit in one company, that company’s story is your story. If the same money is split across several assets that do not move together, one fall does not pull down the whole amount.
Diversification does not remove market swings. It removes the risk that belongs to only one name.
