Diversify, real estate and stocks

2 Replies

I recently listened to both Grant Cardones  podcasts.  He stated, he does not believe in diversifying.  Find the right vehicle and go all in.  I am still contributing a good amount to my simple plan (self employed 401k) .  What is everyone thoughts on this.  What is the general consensus among BP investors?  I think it makes a lot of sense.  I would have more money to buy more properties if I stop my contributions.  Feels risky, but am I just used to mediocrity and fear?  How has everyone else dealt with this? 

Troy, 

Diversification is wise thing to do. King Solomon, the wisest man of the ancient world said: 

“Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”

Ecclesiastes 11:2

Those words are just as accurate today as they were over the centuries. No-one can give you a guarantee that one particular investment vehicle will perform for you few years from now as it is performing today. There are many uncertainties in this world and diversification will help you avoid the risk. 

The basket can represent any asset class: stock market, real estate, precious metals, cryptocurrency, etc. But it is very unlikely that all of them will fail at the same time. 

Dmitriy Fomichenko, Broker
(949) 228-9393

Appreciate the wisdom.  I am currently well diversified and know the reasons for it.  I just was hoping to get many responses.  I like to have many different opinions to ponder.  

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