portfolio-diversity

Vocabulary Word

Definition

'Portfolio-diversity' is like having a pizza with many different toppings. In finance, it means holding different types of investments to spread risk.

Examples in Different Contexts

In retirement savings, 'portfolio diversity' is essential for ensuring that savings grow while being protected against market volatility. A retirement planner might explain, 'Incorporating a mix of stocks, bonds, and real estate can improve portfolio diversity and safeguard your retirement savings.'

Practice Scenarios

Leadership

Scenario:

Our company needs fresh, innovative ideas. I believe investing in diverse talent could be the solution.

Response:

It's true. Emphasizing on portfolio diversity in our hiring process could spur innovation in our team.

Tech

Scenario:

With the recent failures in the e-commerce sector, it might be worthwhile to consider other industries.

Response:

Agreed. It might be advantageous to diversify our portfolio and venture into other tech sectors.