One of the skills of investing it capital management. One of the ways to do this is to make investments in small parcels so that a mistake only makes a small loss. The next tool is to use correlations and invest in things that are not dependent on each other. Easy example. A person supplying food in your village is less dependent on interest rates in Europe than a German bank or a factory with big borrowings. Combining these two ideas is the art of diversification.
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