'undiversified' is a correct and usable word in written English.
It means lacking diversity or variety. Example: The company's portfolio was highly undiversified, with all investments focused on one industry. This made it susceptible to market changes and limited its potential for growth.
And it created a firm that is so big, so undiversified and so dependent on borrowing, his critics argue, that it should be broken up again.
Like a home, a small business is an illiquid, undiversified, highly leveraged investment, the performance of which is likely to be highly correlated with the owner's personal economic welfare.
Critics say this is odd, because mortgage banks' assets are undiversified and many have a higher risk weighting than the bonds.
Secondly, a home is a highly undiversified investment.
Buying a home is like buying one stock; all kinds of bad things can happen to one stock, and if they do, you're wiped out.And of course, this one illiquid, undiversified investment will vary in value with the local economy, which is where the investor works.
Homeownership, let's recall, is in most cases a highly leveraged, undiversified, relatively illiquid bet, with a return that is highly correlated to local labour market conditions.
But smaller, undiversified insurers will find it harder to cope with higher costs and capital requirements.
But even the largest fortune can disappear, especially when undiversified.
And just last month one of the largest employers in the region, Northrup Grumman, which builds ships, announced the closure of its local operations.The city's economy, meanwhile, remains weak and undiversified.
Wherever financial markets are absent or repressed, savings go unused, productive economic opportunities go unrealised and risks go undiversified.
We then establish that these relationships hold empirically using panel data on families in different geographic markets in Britain and in the US.As Mr Ozimek notes, I frequently argue that housing is a bad investment, because it exposes households to significant risks the investment is typically heavily leveraged and undiversified.
