Real Diversification

What will make the realize, capitalize, customize wealth-creation
model work is an understanding of the simple concept we call real diversification.
Most people understand abstractly that they should not
put all of their eggs into one basket. In reality, most investors are not
aware that they have only a single leaky basket into which they have
concentrated their financial future. All of the new clients we have accepted
into our practice over the last four years thought that they were
diversified, but only 2% actually were. The other 98% were only superficially
diversified, if at all. This had led to severe losses during the
2000–2002 market declines. If these people had not taken steps to correct
the situation, they would have faced further erosion of their assets
during the rest of the formulation phase and would miss out on
the acceleration phase altogether.