Five. Disappearing Diversification

What can investors learn from a lemonade stand?

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Think back to that summer lemonade stand you operated as a kid. On hot sunny days you couldn’t keep up with demand from neighborhood children, parents’ yard work, or teenagers developing their tans. But what about the long winter days when everyone was trapped inside? Were you forced to wait out weeks or months of the season with no profits? Success was largely dependent on the uncontrollable variables of temperature and the climate in which you operated. If you only offered lemonade, you probably only made money on sunny days.

But what if you offered an alternative, ...

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