overdiversify

Scatter investments excessively

To overdiversify is to spread investments, efforts, or resources across too many different areas, diluting potential returns or effectiveness.

The term appears most often in finance, where adding too many assets to a portfolio eliminates the benefits of diversification while increasing complexity: By holding sixty different stocks, she had overdiversified to the point where her returns just mirrored the index.

investment

portfolio

Collected works or assets

risk management · holdings · returns · concentration · overextension · rebalancing · mutual funds · ETFs · stocks · bonds

business

expansion

Increase in scope

overextension · acquisitions · conglomerate · unfocused · vertical integration · mergers · subsidiaries · spin-off · revenue streams · market share

biological

gene pool

Species' total genetic diversity

biodiversity · habitat · conservation · genetic variation · population · breeding · hybridization · adaptation · selection pressure · ecological balance

Opposites
portfolio/investment concentration

overdiversifyconcentrate

Reduced, potent form

focus · consolidate · specialize · narrow · narrow down

Family

overdiversified, overdiversifying

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Used worldwide · Timeless · Abstract · Rated G