“Don’t put all your eggs in one basket” is the proverb of sensible risk — a warning against staking everything on a single outcome. Here is what it means, its literary origin, how to use it, and a few sayings that share its caution.
What Does “Don’t Put All Your Eggs in One Basket” Mean?
The proverb means you should not risk everything you have on a single plan, person or investment, because if it fails you lose it all. The image is homely and exact: carry all your eggs in one basket, drop it, and every egg breaks; spread them between baskets and a single mishap costs you only a few. It is classic advice for investors, but it applies to any situation where spreading your risk is wiser than betting it all on one chance.
Origin of the Proverb
The saying is usually credited to Miguel de Cervantes, whose novel Don Quixote (1605–1615) contains the line that it is “the part of a wise man to keep himself today for tomorrow, and not venture all his eggs in one basket.” Like most proverbs it was probably already circulating — most likely of Spanish or Italian origin — and Cervantes simply gave it a famous home. By the seventeenth century it was firmly established in English, and the rise of modern investing only made its wisdom more quoted.
Examples in a Sentence
- “He invested in a dozen different companies — never put all your eggs in one basket.”
- “Apply to several universities, not just one. Don’t put all your eggs in one basket.”
- “Relying on a single client is risky; don’t put all your eggs in one basket.”
Similar Proverbs
- Don’t count your chickens before they hatch — don’t rely on an outcome that hasn’t happened.
- A bird in the hand is worth two in the bush — value the certain over the risky.
- Better safe than sorry — caution beats regret.
- Hedge your bets — protect yourself by not committing to just one option.
For more shrewd, cautionary wisdom, see our money proverbs and work proverbs, or browse the full library of proverbs and their meanings.
Frequently Asked Questions
What does “don’t put all your eggs in one basket” mean?
It means you should not risk everything on a single plan or venture, because if that one thing fails you lose everything. Spreading your risk is safer.
Where does the proverb come from?
It is most famously found in Cervantes’ Don Quixote (1605–1615), though the idea, probably of Spanish or Italian origin, was already in circulation and became established in English in the seventeenth century.
Is it used in investing?
Very much so. It is one of the most common ways to express the principle of diversification — spreading investments across many assets so that no single failure wipes you out.