Now refers to the so-called "diversified investment" in the investment community, which is to invest funds in different types of assets to achieve the purpose of hedging and increasing value.

Interpretation:

Don’t invest all your capital in one thing, but make multiple preparations. In this way, if this basket is broken, there will be eggs in other baskets left. People are warned not to make all-or-nothing decisions when conducting economic activities, but to leave more escape routes.

Application:

There is a wise saying in the investment community - "Don't put your eggs in one basket." It is said that investment needs to decompose risks to avoid huge losses after a desperate failure. Investment risk refers to the uncertainty about future investment income, and the risk of loss of income or even loss of principal during investment. Risks assumed to obtain uncertain expected benefits. It is also a kind of operating risk, which usually refers to the uncertainty of the expected rate of return on corporate investment. Only under the condition that risks and benefits are unified, investment behavior can be effectively adjusted. In fact, if investment is understood in a broad sense, all cooperation or transactions can be regarded as investments, and this classic saying also applies. Market risks cannot be avoided by investors, which explains why when the market falls across the board, the stock price of a company with good profits and good management may also fall along with the market conditions. Non-market risks are risks unique to individual investment projects. Investors can achieve the goal of reducing non-market risks by diversifying their investments. The so-called "diversification investment" is to invest funds in different types of assets. So don't put your eggs in one basket.