👉 Overdiversifying refers to a strategy in which an organization or individual invests money, resources, and efforts into multiple unrelated businesses or ventures. This approach often involves investing in companies that are not directly related to one's own core business interests, thereby potentially increasing the potential for financial gain from diversified investments. By doing so, overdiversification can lead to a more diverse range of opportunities and better risk management strategies compared to focusing on just one business line or sector. This approach is commonly used
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