Investing is all about taking risks to grow our heard earned money. We’ve been hearing a lot about diversification when it comes to investments as we usually hear ‘don’t put all your eggs in one basket’. “Diversify! Diversify! Diversify!” That’s what most people tell. However, according to Robert Kiyosaki, that investment rule is for average investors only and may not be applicable for other types of investors.
So if diversification is not the rule of money in investing, then what is it? Kiyosaki went on to describe a word FOCUS which stands for F – Follow, O – One, C – Course, U – Until, S – Successful – Follow One Course Until Successful and keep doing it.
Diversification is another word for Deworsification. Brokers tell you to buy more stuffs because they cannot give you the right advise on which stock or real estate is good. They tell you to buy this or buy that because most probably, they are after for the commissions that they’ll get. Once again, they are called ‘brokers’ because they are ‘broker than you’. Warren Buffett, the world’s greatest investor, did not diversify. Instead, he focused on a concentrated portfolio of stocks to grow his wealth.
Investing is synanymous to learning how to walk. You will definitely fail a lot of times but once you learned how to walk, then you’ll know it forever. Watch below how Kiyosaki presents ‘Why Diversification is a Mistake?’
Henry Sy will not be called the retail tycoon if he did not focus developing his legion of SM Malls. Donald Trump won’t be a real estate magnate if he did not focus on investing in real estate. Steve Jobs won’t be remebered as the great innovator of technology if he did not focus on innovation.
What works for other people may not work for you and vice versa. If you became successful in real estate, then continue investing in real estate. If you’ve somehow mastered investing in stocks, then continue doing it. If you found success in making money online, then keep doing it. Get your hands dirty and learn what works. Don’t just invest for the sake of diversification. Increase your financial intelligence and understad each venture you are entering into.
P.S. I had the chance to be featured in an interview conducted by Bill Hazelton of Credit Card Assist where I described what motivated me to launch Millionaire Acts and the greatest achievements that I had since I started this blog.