Diversification across asset groups is not the reason you diversify in the stock market. The idea called an all weather portfolio, where you have asset groups that are going to perform differently in different economic environments. Weu could have a wymar republic inflation. You could have a depression, and 30 years later you're goin to come ut. And it's going to distribute your capital properly - reducing risk without reducing return.
If you think that because real estate lets you leverage your investment, then the rate of return is much higher than investing in a business, and is, therefore a better place for beginner investors to put their money, think again. This is a commonly held idea that can be completely mistaken.
Phil and other expert investors – including Warren Buffett – have owned real estate. From subdivisions to large farms, apartments, commercial property, and single-family homes, if you assess it’s valuable for your investing goals, real estate could be a good option for you.
This week on InvestED, in an episode from The Vault, Danielle and Phil discuss whether or not it’s possible to make real estate a beneficial component of a high-performing financial portfolio.
Learn more about following the Rule #1 method of successful investing! Click here to download your copy of Phil’s Value Investing Cheat Sheet: https://bit.ly/3qBJfxU
Resources Discussed:
Topics Discussed:
- Rule #1 Investing
- Real Estate Investing
- Warren Buffet Berkshire Hathaway Letters
- Risk Management
- Skuttlebutt
- All-Weather Portfolio
For show notes and more information visit www.investedpodcast.com
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