Five Keys to Investing Success, Key #5: Diversify

Here's part 5 of Kiplinger's five keys to investing success. Today, we'll be covering key #5, diversify. Their thoughts:

There are at least three good reasons to diversify your investments:

• As the adage goes, you shouldn’t put all your eggs in one basket.
• No investment performs well all the time; when one thing is down, another thing tends to be up.
• You may be able to increase your return by diversifying.

Yet another reason I like index funds -- they are diversified among many different stocks.

For more thoughts on investing your money, see these links:

• How to Find Money to Invest

• Index Investing Out-Performs Most Actively Managed Funds, Costs Taxes are Why

• Take These Steps before You Start Investing

• Learn from Millionaires and Others -- Don't Trade Frequently