Don’t put all your eggs in one basket.”

This is an old saying that remains relevant, especially when it comes to investing. If you put all your eggs in one basket and that basket gets knocked off the table, all your eggs will break.

If you had put only half your eggs in that basket and put the other half in a carton in the refrigerator and the basket fell off the table, you will be glad to still have half your eggs safely stored in the fridge.

Even gamblers know this. Take roulette for example.

The odds of betting on a single number and winning is 35 to 1 (2.60%) and the odds of a 2 number combination increases your chances to 17 to 1 (5.3%). Once you increase to a 4 number combination, that increases your chances to 8 to 1 (10.5%)!

But the definition of a diversified investment portfolio is not the same for all investors.

Especially for those with different levels of investing expertise.