Podcast excerpt in which Jeff Dudan discusses how people typically create most of their wealth during a short concentrated period, then protect it via diversification. He describes returning to a concentrated mode of building (Homefront Brands) to grow wealth and engage with peers, while keeping diversified investments intact for protection.
Chapters
People make their wealth. You know, I've seen, you know, I've seen this over and over. I heard this years ago. But generally people make the majority of their wealth in a very, very short period of time. They spend 20 years getting good at something and then finally that opportunity, their, their preparation meets opportunity, whether it's in market, whether it's in a deal, and then like in that two to three years, like they do the deal that makes them a lifetime of money. You make your wealth through concentration. You protect your wealth, you maintain it through diversification. So, you know, when I'm like, you know, I sold a business and, you know, we had all this money and we diversified it and that's great, we've been able to really protect it. But if I wanted to grow at a 25% CAGR, or I wanted to have, if I wanted to hit my hourly rate, then I self. I ascribed to myself for my time. The only way that I could hit those numbers was to go back in and create in a concentrated way again. And that's what Homefront Brands is. So. And you know, all of that diversified investment is all still there and you know, it's clicking away. It's not particularly risky. It's, it's in some private and alternatives, it's in the stock market, it's in bonds, it's got a nice allocation. I'm not messing with that. So that's protected there. But I mean, I could just sit there and watch that and, and it'll be. And it's fine, you know, but if I really want to move to the next level, if I want to get in the elevator and I want to go back up three or four floors and I want to run around with the people that are on that floor and get into that room and make that, you know, change my thinking with their thinking and impact my journey with their journey, you know, then I've got to be out doing something, I've got to be building something. I have to be bringing something to the table, something that I can teach them, something that I can talk about, something that they can leverage and we can leverage each other. So, yeah, now I'm back into the concentration mode of saying I'm going to focus on building. Maybe not the biggest, maybe it is the biggest, but certainly we're going to focus on being the greatest.
