underdiversify

verb

underdiversify

verb

Etymology From under- + diversify.

1

To fail to diversify sufficiently.

  • A trader may underdiversify by focusing too narrowly on a small number of underlying securities, as well as using too few types of options strategies.2013, M. Thomsett, Options for Risk-Free Portfolios, →ISBN:
  • Individual investors underdiversify.2014, Michael A. Ervolini, Managing Equity Portfolios, →ISBN:
1 more example
  • The second reason is a tendency to underdiversify their portfolios.2017, John R. Nofsinger, The Psychology of Investing, →ISBN:

Entry derived from the Wiktionary, under licence CC BY-SA 4.0 — list of authors.