underdiversify

English

Alternative forms

• under-diversify

Etymology

From under- +‎ diversify.

Pronunciation

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Verb

underdiversify (third-person singular simple present underdiversifies, present participle underdiversifying, simple past and past participle underdiversified)

1. To fail to diversify sufficiently.
   • 2013, M. Thomsett, Options for Risk-Free Portfolios, →ISBN:

     A trader may underdiversify by focusing too narrowly on a small number of underlying securities, as well as using too few types of options strategies.

   • 2014, Michael A. Ervolini, Managing Equity Portfolios, →ISBN:

     Individual investors underdiversify.

   • 2017, John R. Nofsinger, The Psychology of Investing, →ISBN:

     The second reason is a tendency to underdiversify their portfolios.