But if you paint up a motley batch of colorful eggs and spread them over varied business models, assorted company sizes, and diverse geographic markets, you should do fine when one company reports weak earnings, goes bankrupt, or drags an entire industry into a recession.
The other parts of your motley holdings can compensate for what you lost in one catastrophe. At the same time, a large number of variegated stocks gives you many opportunities to find a market-beating winner or two. Remember, the downside of owning a stock is limited to a 100% loss, but the sky is the limit on the upside.