My queston is: If you only invest in stocks is your portfolio really diverse?! My understanding of a diverse investment portfolio is that you don't put all your eggs in the same basket i.e. you spread your money into different assets classes. Stocks is just one asset class - I am thinking that buying shares in different types of companies doesn't really count as having a diverse portfolio because you are still investing in one type of asset class . Buying bricks and mortar and collecting rental income from real estate is another asset class. And investing in real assets such as precious metals is another asset class.