ability to diversify

USAGE SUMMARY

The phrase "ability to diversify" is correct and usable in written English.
It can be used when discussing someone's or an organization's capacity to expand or vary their activities, investments, or offerings. Example: "The company's ability to diversify its product line has contributed to its sustained growth in a competitive market."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

29 human-written examples

"Google's ability to diversify away from the parts of its businesses that are maturing is impressive".

The New York Times - Tech

It would be saving a big export market and preserving its ability to diversify the currency it holds.

The New York Times

Knowing where to go is a matter of assessing your income needs, risk tolerance and ability to diversify.

The New York Times

Retaining the Virgin brand would also have seriously hampered the new owners' ability to diversify into online, TV, music and other money-making spin-offs.

The Guardian

This is the key to African countries' ability to diversify their economies and take a more central role in the global economy.

The Guardian

"We have the ability to diversify wildly," said Chris Weld, whose Berkshire Mountain Distillers, near Great Barrington, Mass., puts out eight different spirits.

The New York Times - Food

Human-verified similar examples from authoritative sources

Similar Expressions

30 human-written examples

PSC's would make exceptional investment managers due to their abilities to diversify themselves in unique yet highly sought after skill-sets.

Huffington Post

Yes, the trickle-down economy is building momentum, but the inequality gap grows wider as high returns on mega-assets for elites trump low returns on micro-assets for working class people -- individuals with little risk tolerance or ability to meaningfully diversify, as explained by Thomas Piketty.

Huffington Post

With 36 different mariner lineages identified, this analysis sheds light on the powerful ability of mariner to diversify.

BMC Genomics

Utilities and some members of Congress have long sought to roll back the law, which limits utilities' ability to acquire other power companies and to diversify.

The New York Times

Many lawmakers continue to back repealing a 67-year-old law, the Public Utility Holding Company Act, that limits utilities' ability to acquire other power companies and to diversify.

The New York Times

Expert writing Tips

Best practice

When discussing long-term financial strategies, clearly define what specific areas or assets should be diversified to reduce overall risk. For instance, instead of simply stating "increase your "ability to diversify"", specify "increase your "ability to diversify" across different asset classes like stocks, bonds, and real estate".

Common error

Avoid assuming that diversification guarantees protection against all losses. While it reduces risk, it doesn't eliminate it. Be realistic about the limitations and avoid phrasing that suggests complete safety: "Diversification provides a safety net, but it's not a fail-safe guarantee against losses."

Linguistic Context

The phrase "ability to diversify" functions as a noun phrase that describes the capacity or potential to expand, vary, or broaden something, such as investments, skills, or strategies. It indicates a capability to move beyond a limited scope.

Expression frequency: Common

Frequent in

News & Media

37%

Science

33%

Formal & Business

12%

Less common in

Wiki

8%

Encyclopedias

8%

Reference

0%

Ludwig's WRAP-UP

In summary, "ability to diversify" is a versatile phrase used to describe the capacity to broaden or vary something, often with the aim of reducing risk or increasing opportunities. Ludwig AI validates its correct usage, noting its relevance in contexts ranging from business to biology. Predominantly found in News & Media and Scientific sources, its register varies from neutral to professional. To enhance clarity, specify what is being diversified. While diversification offers advantages, avoid overstating its benefits as a foolproof solution. Consider alternatives like "capacity for diversification" for varied expression.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

capacity for diversification

Emphasizes the potential or inherent capability to diversify.

potential to branch out

Highlights the possibility of expanding into new areas or markets.

skill in varying approaches

Focuses on the expertise and proficiency in adopting diverse strategies.

capability to expand options

Underlines the power to create and pursue a wider range of choices.

resources for broadening scope

Highlights the availability of assets to extend the range of activities.

opportunity to enlarge portfolio

Focuses on the chance to increase the variety of holdings.

flexibility in adapting strategies

Emphasizes the adaptability and agility in modifying plans.

latitude to diversify income streams

Highlights the freedom to create multiple revenue sources.

means of expanding horizons

Focuses on the methods and resources used to broaden perspectives.

avenues for broadening expertise

Emphasizes opportunities to widen the scope of knowledge and skills.

FAQs

How can I use "ability to diversify" in a sentence?

You can use "ability to diversify" to describe the capacity of a company, individual, or even a biological entity to broaden its range of activities or characteristics. For example, "Google's "ability to diversify" away from the parts of its businesses that are maturing is impressive."

What are some alternatives to "ability to diversify"?

Alternatives include "capacity for diversification", "potential to branch out", or "skill in varying approaches", depending on the context.

Is it better to say "ability to diversify" or "capacity to diversify"?

Both "ability to diversify" and "capacity to diversify" are correct and largely interchangeable. The choice often depends on personal preference or stylistic considerations. "Capacity" might imply a more inherent or built-in potential, while "ability" suggests a more demonstrated or acquired skill.

In finance, what does the "ability to diversify" mean?

In finance, the "ability to diversify" refers to the investor's possibility to spread investments across different asset classes, sectors, or geographic regions. This strategy reduces exposure to any single asset and mitigates risk. For example: "The use of portfolios comprised of a small number of broad-based investments also gives an investor the "ability to diversify" into virtually the entire investment universe with just a small amount of money."