They include diversification to minimize risk of large losses and reasonable efforts to control risk, resulting in growth of the aggregate portfolio value at least at the rate of inflation. (goldenrescue.com)
For most investors it probably doesn't make sense to invest any further out than intermediate bonds or bond funds (10 year maximum maturity) to lower the risk of large losses. (awealthofcommonsense.com)
It makes sense to invest in stock index or mutual funds because they give you a broadly diversified portfolio of many stocks which reduces your risk of large losses from owning a single stock. (awealthofcommonsense.com)