Math with Bad DrawingsCartoon Archive

Diversification

December 19, 2017

After a lesson on diversification, someone plans to put all their money in one company's stock, just in different shares.

Use this cartoon

Free for classrooms, worksheets, slides and other non-commercial use under CC BY-NC 4.0, with credit to Ben Orlin.

Cartoon by Ben Orlin, Math with Bad Drawings. https://cartoons.mathwithbaddrawings.com/2017-12-19-diversification/ (CC BY-NC 4.0)
Transcript

A: "And that's why diversification is so important in investment. Make sense?"

B: "Definitely! Now, excuse me, I've gotta go buy tons of Apple stock."

A: "But... that's the exact opposite of..."

B: "Nah, don't worry. I'll buy all different shares. Diversification!"

Topics
Applied Math › FinanceProbability › RiskStatistics › Variance & Standard Deviation
Level
High SchoolCollege
Themes
Money & ShoppingCommon Mistakes