Todd PolkeInvestment Strategist l Wealth Coach l Speaker, Todd Polke · Investment Strategist l Helping Investors and Business Owners grow their Wealth Faster

Here's the reality of investing... #shorts #australia #investing #money #finance

11 Nov 2024 · 1 min

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In this short, the speaker advises investors to diversify not only by the risk profile of assets but also by the deal providers to avoid key‑person risk. He warns that relying on a single provider can jeopardize a portfolio if that provider fails. The speaker stresses that investing is not a flawless journey; despite thorough due diligence and strong networks, some investments will underperform due to market changes. Therefore, investors should anticipate setbacks, be prepared to act quickly when things go wrong, and maintain a realistic outlook on wealth creation.

Chapters

So diversify via the risk profile of the asset itself, but you also want to diversify via the provider, deal provider. Okay, so you might have 5 different deals going, but if you have it all with one provider, then you've got a key person risk with that single provider. But if you had opportunities that were spread over different people that are doing different things, even if one doesn't go so well, The others are still doing okay. So that's why we don't put everything in one. Like, if you think that all of your journey around wealth creation and investing is just going to be rainbows and unicorns and everything's going to be totally fine, you're absolutely kidding yourself. It's not going to be happening whatsoever. You've got to make sure that you, um, you expect that there's going to be some things that aren't going to work perfectly, okay? And, uh, prepare for it and be ready to move past it as soon as it winds up happening, right? Because that's just the reality of investing. It doesn't all go perfectly. No matter how much due diligence and how much work and how much networks you have, it's just the reality of the marketplace because the market changes.