Why you should diversify your investments
Religion & Liberty Online

Why you should diversify your investments

Note: This is post #95 in a weekly video series on basic economics.

Before it went bankrupt in 2001, many of Enron’s employees had most or all of their retirement funds in company stock. When the company collapsed, as Alex Tabarrok notes, employees who were once multimillionaires ended up with almost nothing. They failed to heed the most basic rule of investing: Don’t put all your eggs in one basket.

In this video by Marginal Revolution University, Tabarrok explains why diversification is essential for responsible investing.

(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Click here to see other videos in the Introduction to Economics series.

Joe Carter

Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, a communications specialist for the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and as an adjunct professor of journalism at Patrick Henry College. He is the editor of the NIV Lifehacks Bible and co-author of How to Argue like Jesus: Learning Persuasion from History's Greatest Communicator (Crossway).