Professor Butler says diversification by industry and sector suffers from the same quirk as international diversification.
So he described the theory of diversification by saying: "You know, don't put your eggs in one basket".
The international narcotics trade has been the foundation for diversification by crime and terror groups into other lucrative ventures.
Mr. Ackman is a concentrated investor, ignoring the popular consensus on the importance of diversification by putting his money into just eight to 10 positions at a time.
The best way to get exposure is to buy a global emerging markets fund, which provides some diversification by investing across a range of world markets.
Diversification by expanding manufacturing depends on an abundance of cheap energy for running plants, however, and is thus tied to Qatar's hydrocarbon resources.
This is not some new corporate experiment out of company headquarters in Illinois, the latest attempt at menu diversification by a fast-food behemoth that, business-wise, has seen better days.
"Given Bear's higher exposure to the softening mortgage market and less diversification by product and region than peers, we believe Bear should trade at a discount to its 5-year average multiples," analyst Mike Mayo wrote in an investor note.
While the farming industry collects about 41 billion euros in direct aid, this year, 13.6 billion euros more went to rural development programs — to encourage diversification by financing projects like organic farming, renewable energy and farm tourism.
In anticipation, the West Virginia Center for Budget and Policy, a progressive think tank, has called for using natural-resources taxes to create a "future fund" that would promote diversification by investing in infrastructure, education, and job-training programs.
It started to look abroad precisely because domestic opportunities were so limited.In this section Uncharted airspace Re-edit Taking stock Unquenched thirst Taxman.biz ReprintsWith hardly any operational synergies, RWE's water ventures look suspiciously like diversification by another name.
