Ellis Hammond manages a private network of investors seeking passive investment opportunities in multifamily syndications across the United States. Ellis is passionate about the intersection of faith and capital and hosts a weekly podcast show, Kingdom REI, in order to educate and inspire other investors and entrepreneurs to see capital as a means for greater Kingdom influence. To learn how you can invest alongside Ellis and this community, visit EllisHammond.com. ANYTHING BUT AVERAGE Average thinking leads to average action, which leads to average results. If you are constantly influenced by main - stream media and traditional wealth management advice, then you can expect “traditional or average results.” Just look at the majority of the middle class. CONVICTION IS KEY Warren Buffett clearly showed his conviction in Geico when he doubled down on his investment when every- one else was jumping ship. How did he keep a level head when everyone else was screaming “JUMP!”? He had conviction! He built that conviction because he spent TIME getting to know the CEO, understanding the ins and outs of the company, and having a firm grasp on the scope of the financial industry and market share Geico could eventually overtake. GO “ALL-IN” AND THEN DIVERSIFY Clearly diversification has its place in managing wealth. However, if one is serious about creating large amounts of wealth, you have to display the guts to go all-in on an opportunity. Let me be clear, I don’t think this approach is for everyone. Clearly, Buffett didn’t think so either. He’s also famous for the 90/10 approach where he recommends investing 90 percent into index funds. The S&P 500, for example, has over 500 companies. Did he change his mind? I don’t think so. He realizes that most investors won’t do the proper research to form the conviction needed to double down when times get rough and have the guts to go all-in when everyone else seems to think otherwise. So back to the question we began with, “is diversifica - tion a good thing?” My opinion: Diversification is a great idea for most investors who want to reduce risk in their portfolio while building a steady and growing nest egg to live from in retirement. On the contrary, investors like Warren Buffett, Elon Musk, and the many new “bitcoin millionaires” I person- ally know show what’s possible for those who think out- side the box, display conviction, and go all-in. •
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