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Diversifying Your Portfolio

A lesson in eggs, baskets and diversification

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This story appears in the January 2005 issue of Entrepreneur. Subscribe »

The saying "Don't put all your eggs in one basket" may have had its place on Wall Street during the past century, but with today's range of investment choices, that old axiom needs some rethinking.

You don't have to be a farmer's daughter to know that eggs come in different colors and sizes. And if you've tried creating a diversified portfolio based on that egg idea, you've probably learned that there's more to it than first meets the eye.

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