diworsification
English edit
Etymology edit
Blend of diversification + worse. Coined by American investor, mutual fund manager Peter Lynch.
Noun edit
diworsification (countable and uncountable, plural diworsifications)
- (finance, business, informal, humorous) The process by which something is made something worse by diversifying.
- 1997, Ralph L. Block, The Essential REIT: A Guide to Profitable Investing in Real Estate Investment Trusts, San Francisco, C.A.: Brunston Press, →ISBN, page 9:
- Furthermore, even well-regarded public companies have been known to fritter away their shareholders' funds in ill-timed business expansions or, as Peter Lynch has said, "diworsifications."
- 2008, Paul Orfalea, Lance Helfert, Atticus Lowe, Dean Zatkowsky, The Entrepreneurial Investor: The Art, Science, and Business of Value Investing, Hoboken, N.J.: John Wiley & Sons, Inc., →ISBN, page 68:
- Not only does the process create an organic and self-sustaining kind of teamwork, but it prevents diworsification for companies, which can stay focused on what they do best and what fits their core competencies.