Portfolio diversification: two words that make investors feel all warm and fuzzy inside, the theory being that if you spread your investments across multiple types of assets, you will get improved returns and lower your risk. In other words, you shouldn’t put all your eggs in one basket.
However, such an approach doesn’t always guarantee success. Take Toyota, for example. For the past few decades, the Japanese manufacturer has taken a cautious approach with its ‘investments’, focusing on hybrid technology, hydrogen fuel cells and, to a much lesser extent, batteryelectric vehicles (BEVs). But this conservative BEV strategy has forced Toyota to play an aggressive game of catch-up to compete with rivals like Tesla that have achieved a stratospheric rise in market value over the past two years.
Hence Toyota boss…