#12 – Never Put All of Your Eggs in One Basket

Never put all of your eggs in one basket.  This is a piece of advice which means that one should not concentrate all efforts and resources in one area as one could lose everything.

Here are a few examples of this:

Let’s say you had a large vegetable garden, but you only planted one type of vegetable, and you happen to have a bug or animal in your yard that ate only that vegetable.  They would destroy your entire garden. However, if you had planted two or three different vegetables, you would still have some vegetables left.

Let’s say you had $100,000 to invest.  You decide to spend all $100,000 on buying real estate, instead of buying some real estate, some stock and leaving some of the money in the bank as cash.  The real estate market crashes and you lose all $100,000.  

This can also apply to building a business. If you build a business by selling just one product or services, you are putting yourself at risk.  

Remember this as you go through life.  Never put all of your eggs in one basket.

Love,
Dad