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where they have already done so well. The rest, unfor- tunately, are completely different real estate land- scapes and the investor will be lucky to break even if they simply transfer their strategy to a new location. An investment advisor might tell them they have been wise because their diversification strategy pre- served its initial capital. However, it was not wise! That capital could have been spent acquiring multiple assets in their initial market that would have been predictable and performing promptly because they already had a system in place. They have not diversified their portfo- lio; they have worsened it by spending capital on new assets that are statistically less likely to perform than the existing assets already in their portfolio. PUTTINGYOUR EGGS IN ONE BASKET So, should all your eggs go in one investment bas- ket every time? Well, in today’s uncertain economy, a little predictability brings a lot of value. Think about Buffett’s observation on this metaphor. He said, “Keep all your eggs in one basket, but watch that basket closely.” Essentially, focus on growth and known strategies for creating growth. Jim Rogers, another extremely successful investor who co-founded the Quantum Fund and Soros Fund Management before creating his own commodities index, has also made similar observations on this top- ic. He agreed with Buffett and went one step further, adding, “And make sure you have the right basket.” In real estate investing, the right basket is the one that is predictable, growth-oriented, and has a proven history of performing under adverse conditions. While the national and global economies will eventually recover from the havoc created by COVID-19, things are likely to look very different during and after the recovery. The old rules may no longer apply. However, the basic human need for housing and the investor role in providing it will not change. Simply identify markets in which you can produc- tively meet this need and then focus your efforts in those areas. You’ve heard the saying, “If it ain’t broke, don’t fix it.” Well, when it comes to real estate, if your investment strategy is yielding good returns, don’t di- worse-ify those returns! •

TomOlson is the founder and president of The Olson Group of real estate companies and the Good Success Mastermind. You can access the latest edition of his book, Contingency Planning for Your Small Business During COVID-19, and learnmore about the Good Success Mastermind and 30-Day Good Success Journey at www.GoodSuccess.com.

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