Percent of Your Net Worth in RE?
What percentage of everyone's net worth is held in RE?
I've been trying to formulate my business plan and have been thinking about my long term goals lately. Wanted to know if people have most of their networth in RE or if they keep a diversified portfolio.
Even though I think it's Buffet who said that diversification isn't always the best investment model, I feel for most investors it might be.. what's everyone's opinion on this
Most Popular Reply
Your portfolio allocation will depend to a large extent on your knowledge and skills. The reason Buffett does not like diversification is becase he knows what he is doing and diversifying would simply spread some of his money to less profitable assets instead of putting it all in the most highly profitable ones.
I consider the stock market somewhat overvalued today whereas RE is somewhat undervalued in many markets and for many types of properties. So it makes sense to focus on RE.