Most people have heard the expression, ‘Never put all your eggs in one basket.’
"Never put all your eggs in one basket" means don't rely entirely on a single plan, investment, or opportunity, as if that one thing fails, you could lose everything; essentially, spread your risks by having multiple options to avoid complete loss if one thing goes wrong.
At eighteen, my colleague and friend, started investing in the UK’s stock market by reading daily Financial Times newspapers to follow market fluctuations and plot graphs to buy shares low and sell high. Back then in the 70s computers weren’t used at his place of work. Actually, the FT was the best source of stock market performance. He carefully judged those stocks doing well, bought and sold making a steady profit, and eased into an amateur market trader status.
A year later he’d made several successful trade deals, and put the profits together. Every trade had been strategically well placed, and so his belief in his ability to make serious wedge had been playing on his mind. He learned about a company that was channeling high and low, and yet all his previous tradings were based purely on plotted graphs via market movement, this particular firm was running high and low, so profit margins were impressive. He got ahead of himself, and believing he would profit handsomely, put all his years earnings into the stock by buying shares when they were low.
In the following days, the market value continued to drop instead of shooting back up. He’d put all his eggs in one basket and was reliant on the stock performing as it had in previous weeks. Eventually, it crashed, and was no more. He had been wiped out. This was an unexpected lesson he was totally sightless of, and he lost every sterling pound invested.
The moral of the story is, it doesn’t matter how sure you are of success, the unexpected occurs, so you shouldn’t invest all your eggs in one basket. In fact, it is the same in every walk of life, as there are no guarantees, and you never know what is around the corner. Successful businessmen, usually spread their risk in different ventures, or investment opportunities, and that goes in all walks of life.
Be good to yourself and continue developing maximum knowledge. Improve consistently and consecutively and watch your life blossom to new heights. Don’t leave for tomorrow what you can do today!
Good luck!
Prof. Carl Boniface
Vocabulary builder:
Wedge (n) = slice, piece, chunk, block, section, sliver, hunk, wood block
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