Skip to main content

What is portfolio diversification?

InvestingWarren Team

Quick answer

Diversification means spreading investments across different assets (stocks, bonds), sectors (tech, healthcare), and geographies (US, international) to reduce risk without giving up expected returns.

Sample diversified portfolio: stock/bond/international/real estate split.
Sample diversified portfolio: stock/bond/international/real estate split.

The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions. Read our disclaimers.

All questions

Get an answer built on your own numbers

Warren reads your accounts, then answers questions like this one with your real income, taxes and goals in mind.