Short transcript excerpt from a YouTube video arguing that investing is necessary to protect purchasing power from inflation, and that diversification ("don't put all your eggs in one basket") reduces the risk of losing savings when investing. The speaker contrasts saving vs investing and stresses spreading investments across different assets to avoid total loss.
Why do you think we need to invest? We cannot leave our money sitting still. If we leave our money sit there, we're losing borrowing power due to inflation. So we are forced to invest. And when we invest. Have any one of you heard this cliche? Don't put all your eggs in one basket. Why do we want to diversify our investment? Because underlying we know that saving is different from investing. We know that invest, we're subject to risk. We don't want to lose all our bag of basket. Right? So we want to put in different basket.
