Imagine you love eating chicken rice, and you could eat it every day.
You know all the best chicken rice stalls in town and which ones serve the most succulent chicken and tastiest chilli.
However, if you only eat chicken rice and nothing else, you may miss out on other great Singaporean dishes, such as laksa, char kway teow, or satay.
If you diversify your food choices and try different types of Singaporean cuisine, you will have a wider variety of flavours and textures to enjoy.
Even if you have a particular favourite dish, you can still appreciate and enjoy the different tastes and experiences of other Singaporean foods.
Similarly, investing all your money in one stock or one sector is like savouring just one dish or type of cuisine.
It may prove profitable, but it also limits your exposure to other opportunities.
By diversifying your investments across different stocks and sectors, you reduce the overall risk...