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Key to investing is managing risk. The easiest way to do this is by diversifying a portfolio. It is important to realise that you should not only diversify across different companies, but also across asset classes (stocks, property and debt) and geographies (which adds currency diversification).
When constructing a portfolio, people often stick with a single stock, which means their investment is very undiversified. You can manage this by starting with an exchange-traded fund (ETF), therefore starting with a basket of diverse shares.