The Beginning (BC)

Trade, cow in half

HistoryDiversification is mentioned in the Bible, in the book of Ecclesiastes which was written in approximately 935 B.C.[15]:

But divide your investments among many places,
for you do not know what risks might lie ahead.[16]
Diversification is also mentioned in the Talmud. The formula given there is to split one's assets into thirds: one third in business (buying and selling things), one third kept liquid (e.g. gold coins), and one third in land (real estate).

Diversification is mentioned in Shakespeare[17] (Merchant of Venice):

My ventures are not in one bottom trusted,
Nor to one place; nor is my whole estate
Upon the fortune of this present year:
Therefore, my merchandise makes me not sad.
The modern understanding of diversification dates back to the work of Harry Markowitz[18] in the 1950s