506 - Buy-and-Hold Investors: Don’t Forget to Diversify by Chris Clothier
Diversification is the key to a well-balanced portfolio, but it is possible to diversify within one asset class.
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Show Notes
In finance, portfolio diversification is the way to grow and protect your assets. Though diversification is typically understood as holding different types of investments or employing different investment strategies, it is still more than possible to diversify a portfolio with only one kind of asset (like single-family rental properties).
Every investor knows the importance of diversification. It goes back to the adage, “Don’t put all your eggs in one basket.”
For buy-and-hold real estate investors, diversification may seem like more of a challenge. After all, you’re employing one specific strategy to achieve your goals. In many cases, you also focus on one particular type of property. Where is diversity to be found?
Believe it or not, you can effectively diversify your portfolio while specializing in one type of strategy or asset. (Read more...)
https://www.biggerpockets.com/blog/buy-and-hold-diversification
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