diversification

noun

di·​ver·​si·​fi·​ca·​tion də-ˌvər-sə-fə-ˈkā-shən 

dī-

1

: the act or process of diversifying something or of becoming diversified : an increase in the variety or diversity of something

Between the appearance of complex cells 2.1 billion to 1.6 billion years ago and the explosive diversification of multicellular animals some 800 million years ago, not much happens in the fossil record.

—Carolyn Gramling

2

a

: the act or practice of spreading investments among a variety of securities or classes of securities

I've emphasized bond mutual funds because they're so useful for investors of average means. You get diversification (because the fund owns many types of bonds) and liquidity (you can cash out, at the market price, whenever you want).

—Jane Bryant Quinn

b

: the act or policy of increasing the variety of a company's products

And it envisions a diversification into products such as clothing and electronics, which Nakasone hopes will attract more customers outside the busy holiday season.

—Karl Taro Greenfeld

Examples of diversification in a Sentence

Recent Examples on the Web

This is a good way to add tax diversification to your financial plan and reduce your lifetime tax bill. —Alicia Adamczyk, Fortune, 11 May 2024

And these protests ultimately succeeded in the establishment of Africana and Puerto Rican studies departments, the diversification of the faculty, and open admissions at CUNY. —TIME, 9 May 2024

It’s proved a profitable form of diversification for Wonderful — which also owns Fiji Water and Justin Vineyards — at a time when almond prices are falling and water supplies are tight. —Rebecca Plevin, Los Angeles Times, 8 May 2024

The six general areas are affordability and housing, economic diversification, education, the airport and seaport, environmental protection and modernization of local government services. —Andres Viglucci, Miami Herald, 7 May 2024

To be fair, Equinor’s experience in the North Sea is of some assistance in building offshore wind farms, but this diversification effort has had its difficulties. —Andrew Stuttaford, National Review, 6 May 2024

What’s safe to say is that broad diversification across asset classes has helped stabilize long-term investment returns. —Jeff Sommer, New York Times, 19 Apr. 2024

Nevertheless, the basic argument in favor of diversification still holds, and an uncomplicated 60/40 strategy can be a good way to achieve it. —The Arizona Republic, 31 Mar. 2024

In celebration of George Washington’s birthday, delve into the personal financial wisdom exemplified by the first president of the U.S. Unpacking his approach to personal finance and wealth management offers timeless lessons on budgeting, investing, debt management, and income diversification. —True Tamplin, Forbes, 22 Feb. 2024

Word History

Etymology

borrowed from Middle French & Medieval Latin; Middle French diversificacion, diversification, borrowed from Medieval Latin dīversificātiōn-, dīversificātiō "differentiation, variation," from dīversificāre "to differentiate, diversify" + Latin -tiōn- -tiō, suffix of verbal action

First Known Use

1603, in the meaning defined at sense 1