Holy Grail Of Investing | Bridger Pennington

The most important principle is about what I call the holy grail of investing, and that's about diversification. What it means is, in a nutshell, I could describe it as if you can get 10 or 15 good uncorrelated investments, you can reduce your risk by up to 80% without reducing your return. That means you increase your return-to-risk ratio by a factor of 5.

Ray actually in person told me this, this is a couple months ago, I was with him. Now he's talking obviously about investing as like a job and/or a business. I think the best investment you can make though, when you have $25 grand, when you have $10 grand or $50 grand, in my opinion, is to invest in yourself, your own business, your own stuff, because that's where you'll get the most asymmetrical risk versus return. You can reduce the risk and have the highest upside, exactly what he's talking about, but just in your own business and/or developing your own skill sets to produce more income.