Safety comes from spreading it wide - Mary Holm

p between those shares (their correlation).

You can have a diversified portfolio by holding a biotech share, a computer software share and shares in a hedge fund. You have a risky portfolio but well diversified nonetheless.

A: You make a really good point that I should have made more clearly in recent columns. I think, though, that you overstate your case.

The more shares you hold, the more diversified you are - even if they are all in the same industry.

While economic, legislative and other factors affect all the companies in an industry, there are also many company-specific factors that affect a share price.

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