This weekend my roommate was little worried , because he lost his bunch of keys , All his keys were in a bunch together , which included his Office keys , bike keys , Drawer keys and house keys ,along with some other keys , He lost it somewhere before 3-4 days back .
Looks like he is now regretting why he never kept all unrelated keys at different places , The reason why he kept it in a bunch was the “convenience factor” , he can just take that bunch and he will have all keys , he doesn’t have to manage them all . But he never concentrated on the situation when he can loose all the keys together .
Does this teaches us something regarding our investment decisions ?
I guess yes , Don’t do all your investment (keys) in same product (bunch) … Managing them is pretty easy because you don’t have to take care of different things and there is convenience , One day some thing bad can happen with that investment , it will be a big risk . Diversify your risk (keep different keys at different place) by investing your money across different asset classes like Equity , Debt , Real Estate , Cash , Gold etc .
If you invest only in Equity , you have chances of great returns , that i agree , But one bad day if things go wrong (you lost your keys) , the situation can be worse .
Manging your keys well is the key to success .
