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Diversify to Minimize Risk

Maintaining a diverse portfolio helps to insure both you and your investment portfolio will live to fight another day.

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This story appears in the April 2009 issue of Entrepreneur. Subscribe »

After the beating most of us took in the markets last year, it's tempting to stick our in U.S. Treasuries that yield little or nothing in the way of returns.

But, while fleeing to the safety of Uncle Sam may seem like a safe bet, it's a losing proposition when you factor in the average U.S. inflation rate of 3.43 percent per year. In other words, the $1 million you put in Treasuries today might only have about $713,730 in purchasing power 10 years down the road. Hardly the best business decision.

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