Neubarth
At the Ballpark July 30th
OBVIOUSLY, You are not diversified enough if the housing collapse or derivative losses can cause bankruptcy.
No, it is not "diversified enough." It's not "reserved enough."
The division that brought down AIG was a small part of their business. Derivatives were a small part of Citigroup. Without the investment bank, Citi would have been fine.
You need to look up the definition of diversified.
Reserved enough? Humnmm? When you deversify, you spread your investments (or business activities) out so that not one catestrophic loss can wipe you out.
"Reserved" speaks to me of proper Victorian manners. I smiled when I read that.