Why is the practice of holding many different securities in many different sectors considered a desirable strategy?

Question

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Holding many different securities in many different sectors is considered a desirable strategy because it helps to reduce risk. By diversifying your portfolio, you are less reliant on the performance of a single security or sector, which protects you against losses and helps to ensure stable returns over the long term. This is important because no investment can be entirely risk-free, and no single security or sector is likely to outperform the market consistently.

Why Is the Practice of Holding Many Different Securities in Many