We here at The Fool are always preaching diversity, and we really do mean it. It behooves us as investors to get exposure to companies of different sizes and in different markets. That way, we avoid overexposure to any one investment in particular. The financial crisis has only emphasized the importance of keeping your proverbial eggs in more than one basket.
So what is diversity, and where can we get some? Well, in general, it's nice to have companies of different sizes in your portfolio: large caps ($10 billion or more), mid caps (between $2 billion and $10 billion), and small caps (less than $2 billion). Here are three ideas to consider in your quest for diversification.
For a long time, Wal-Mart
Insurance has had a tough go of it lately, but some companies are just plain good. Look no further than Markel
Looking for a small cap with mettle? Taseko Mines
Of course, these are just ideas, not formal recommendations. As such, we recommend you conduct your own due diligence. Nonetheless, diversifying your portfolio wisely is one of the best ways to protect yourself against the great unknowns that the market throws at us from time to time. In this megaretailer, insurance company, and small miner, you'll find three companies that might just help you realize your destiny with diversity.
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Jason Moser owns shares of Markel and actually worked for Travelers Insurance in a former life. Markel and Wal-Mart are Motley Fool Inside Value recommendations. The Fool owns shares of Markel. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.