Hedge one's bets
Meaning
To reduce one's risk of significant loss by supporting more than one outcome or by taking precautions against potential failure.
Origin
The phrase 'hedge one's bets' springs from the literal act of building a hedge—a protective barrier of bushes or trees around a property. Just as a hedge guards against intruders or harsh winds, the verb 'to hedge' evolved to mean protecting oneself against loss, especially in the volatile world of gambling. By the 19th century, a savvy punter would 'hedge their bets' by placing a secondary wager that would offset potential losses from their primary bet, ensuring that no matter the outcome, their financial exposure was limited. This strategic maneuver quickly transcended the racetrack, becoming a widespread metaphor for any cautious action taken to minimize risk or ensure a favorable outcome, whatever the future may hold.
Examples
- Fearing a market downturn, the investor decided to hedge his bets by diversifying his portfolio across several asset classes.
- She didn't want to commit to one university yet, so she hedged her bets by applying to a few different programs.