The Math Behind “Don’t Put All Your Eggs in One Basket”

Imagine you're standing in a bustling market, basket in hand, contemplating your shopping list. Each egg represents an investment, and you've been given one simple piece of advice: don’t put all your eggs in one basket. Simple as it sounds, this age-old adage is grounded in a bit of finance wisdom that's worth its weight in gold. But what does it really mean when it comes to making financial decisions, and why should you care? Let’s break it down.