Imagine this: A guy at the party pulls out his phone, shows off his portfolio, and says with pride, “Look, I don’t put all my eggs in one basket.” He might even wink. Is he onto something or just trying to show off? To be honest, both. People give the “Diversify Guy” a hard time. You might have rolled your eyes. But let’s think about this.
Do you remember the friend who invested all of his money into crypto? One terrible headline and—poof!—he’s broke and texting you for aid with his rent. Sure, it’s dramatic. But it does happen. That’s the identical cliff Diversify Guy dances away from. He spreads out his investments, protects his shopping cost against running out of chicken, and even chooses three different ways to walk his dog according on the weather. He’s not crazy; he’s ready. A bit like a squirrel that hides acorns all over the place.
Let’s put on his shoes. Why do you want to spread out? Because life is full of surprises. When tech stocks fall, precious metals shine; when property values rise, stock markets fall. Even the numbers in the lottery never come up again. Putting everything in one pot is just asking for trouble.
There are always interesting types of diversifiers. Some people like footwear, rare coins, baseball cards, and action figurines of adolescent mutant ninja turtles. Why? They find jewels all over the place. That’s not random. That’s a way to keep from getting bored and running out of money. It’s also a method to keep the discussion going at parties.
This way of thinking isn’t only about money. It’s also lunch. Have you ever seen someone at a buffet? It’s uncommon for people to solely load mashed potatoes. Diversify Guy is like the United Nations when he builds a plate—through action, gravy, and spirit.
Life is like a stool with three legs. You fall if you sit on one peg. Put your money on more than one thing. You can’t be sure you’ll get rich, but you can increase your chances. The pandemic changed people’s habits, made jobs go remote, made side hustles popular, and made people question the gig economy. Diversifiers change since that’s what keeps them alive. You know that friend who has two jobs, three hobbies, and a bank account in another country? He is strange. But in a good way.
Have you ever heard the saying “don’t put money into things you don’t know about”? That’s fair. But Diversify Guy at least tries the appetizers before going all in. He has undoubtedly looked into mutual funds, maybe real estate, and possibly has an insurance policy that no one else on the block understands. The aim is not to be careless. It’s about getting ready for surprises.
Be like the Diversify Guy. You might not be ready to put money into Peruvian alpaca farms, but it’s not a bad idea to try new things. Next time you see that person smiling at his balanced portfolio, maybe give him a high five or two to make things even.