Important Lessons in This Chapter

• Successfully implementing an overall asset allocation and diversification strategy is the primary way to reduce risk. If you don't diversify you are taking the risk that large holdings of specific securities will go south and cost you more than you can afford.
• One of the most basic rules of risk taking is: Don't take risks you don't have to take. Most people know this intuitively. That's why Russian roulette has never become a popular pursuit.