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Updated about 11 years ago on . Most recent reply

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Pat Martin
  • Knoxville, TN
57
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116
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One of our own in the WSJ...

Pat Martin
  • Knoxville, TN
Posted

Chris Clothier and his company Memphis Invest are mentioned several times in this WSJ article.  Congrats to you!

http://online.wsj.com/articles/new-ways-to-profit-from-renting-out-single-family-homes-1411150866

Most Popular Reply

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Robert Leonard
  • Investor
  • Lafayette/Baton Rouge, LA
915
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Robert Leonard
  • Investor
  • Lafayette/Baton Rouge, LA
Replied

@Pat Martin the 5% number is a stock market investing rule of thumb (yeah, they use those too).  Some people use 4 others use 5 as their percentage of stock market money that should be invested in any one company.  Any more than that suggests you are "over weighted" and over exposed to specific stock risk.  The corrective action would be to sell the excess and redistribute to other stocks to maintain a diversified portfolio of stocks.

I don't think it's a good transfer of that rule of thumb to say that anyone should limit their REI to 5% of their total investment portfolio. That's some conventional stock market thinking that just does not fit REI. IMO.

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