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Power of Diversification in Investing
The power of diversification in investing lies in the ability to spread investments across a wide range of companies and sectors. By investing in an index fund, which allocates funds based on the weights of companies in the index, investors can benefit from the potential growth of a diverse group of companies. Diversification not only includes investing in various companies but also extends to geographical diversification, which the speaker acknowledges as an area they need to explore further.