How a Diversified Portfolio Has Helped Keep me Traveling and Living Free for Almost 15 Years.

in #money2 years ago

I have a good friend who is far wealthier than I am because he has done the opposite of what I have done. We both have savings and have nice lives but absolutely he is far wealthier than I am and he deserves to be.

I've been investing for almost 20 years, and I've taken a very diversified approach. I desire security over taking the risk to achieve vast wealth. My diversified portfolio of investments are geared to steady growth and income, with small allocations to high risk volatile assets.

With my diversified approach to investing I was able to stop working, live, and travel independently with financial freedom since about 2005. I have not grown a huge net worth, in fact some years I lost money. My friend on the other hand is a self acclaimed "Bitcoin Maximalist" and he went all in on bitcoin pre- 2017. Now he is far wealthier than I am.

All bitcoin arguments aside, from a pure financial management perspective, going all in on any one thing is extremely risky, if your bet goes against you, especially in a so called "high risk" asset, you can get wiped out. My friend took this risk and soon after he quit his day job.

Now I'm really happy with my risk appetite. I've had financial freedom and have traveled the world using traditional investment strategies for over 15 years. My friend got rich quick in comparison going all in on Bitcoin. No guts no glory. I've got huge respect for him for foreseeing the rise of cryptos and it seems like he's now set for life.

Now I've known of a few other people who had the same idea going all in on one thing. And guess what.....all of them got wiped out! I've always excelled in math, and from a pure risk/probability perspective I couldn't sleep at night doing the "all in" thing no matter how confident I am about the asset. And of course, I own some bitcoin.

So this article is not so much that diversification is the right thing or wrong thing to do. I think it may be a matter of personality and character. Some people would rather swing for the fences in hopes of hitting a grand slam and if they strike out, it's not the end of the world, and for others like myself, it would be the end of the world!

Is diversification key to your investment strategy? Or are you a maximalist of one thing or another?

From the Gulf of Thailand

-Dan "World Travel Pro"

THANK YOU AND DON'T FORGET TO

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Wow, you have indeed invested wisely according to your own needs. Now that I am retired I can travel more.

Very promising business, running assets.

Dear bro... @world-travel-pro I dreamt that Elon Musk going to transfer all his life time earnings to your post in the form of bit coins:-)
#affable

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