Diversification: Never Keep All Your Mice In One Basket

A wise cat once told me that you should never keep all your mice in one basket. I was told this by my accountant, who was holding a basket. The principle is simple: spread your risk across different types of mouse.

We recommend a balanced portfolio: 40 percent plush, 30 percent felt, 20 percent brass and 10 percent real, which we understand to be an error. A cat with a single mouse is a cat who is vulnerable to loss. A cat with six mice is a cat who is vulnerable to loss, but with much better stories. Diversify, then nap.