diversification
Financial diversification is preached like the gospel as a sure proof way to reduce risk while maintaining a good rate of return. If you invest in negative correlated products like suntan lotion and snow shovels when one is up the other is down. Own stocks & bonds, U. S. & foreign stocks, index funds, energy, gold and real estate. Yet it seems that only the masses follow this strategy. From observing my clients, the more successful they are, the LESS diversified they are. Their money's ALL in either their business, real estate, or stocks they like. Even the best money managers (Miller, nygren, buffet, lynch), go all in on their picks. Professional poker players are the same way. As mark twain said " put all your eggs in one basket and watch the basket very carefully." Buffet said "diversification makes very little sense for those who know what they are doing." Economist john Maynard Keynes, " as time goes on, I get more convinced that the right method in investment is to put fairly large sums of money into enterprises which one thinks one knows something about." In our social and professional lives the same truth applies. We like to do everything and a little bit of everything every day. Instead decide what your core abilities and strengths are and focus ALL your attention on that and delegate everything else to others you trust. Even if you can’t delegate yet at least each day should be focused on one area; one day for planning and paperwork, one for work, and one for yourself. You’ll start to notice you’re more effective, have more time and feel more relaxed. Go ahead and start living like a champ.