On today’s episode, we are joined by returning guest and passive investment expert, Jeremy Roll, to talk about investment diversification. Having a diverse investment portfolio is something that Jeremy is a strong advocate of. If you have the mindset that you are trading control for diversification, this investment rationale is a sensible one.
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Diversification should happen across asset class, geography, and operator, which Jeremy explains in further detail. There are so many factors that influence the extent to which you diversify, so having a singular investment blueprint is not possible. Jeremy’s own investment style is highly risk-averse, which is why he has chosen to invest in a hyperdiverse way. This model may not work for you, so instead, you should clearly define your goals and couple it with extensive research into finding deals that match where you would like to be financially. Being mindful of the future not only allows you to set your own investment agenda, but it also streamlines finding the types of investments that will suit your needs best. For some incredible investing insights, join us today!
Key Points From This Episode:
- Why diversification, particularly for passive investors, is so important.
- What trading control for diversification means.
- Why Jeremy personally takes what he calls a ‘hyper diversified’ investment approach.
- The level of diversification does not look the same for every investor.
- The importance of ‘cutting the pie into slices’ and seeing how many investments are possible for you.
- An explanation of what it means to diversify across asset classes, geographies and operators.
- An example from Jeremy’s investments where geography was the deciding factor.
- How to decide on switching between asset class, geography or operator.
- What Jeremy does to manage such a diversified portfolio of investments.
- Why having a more than ten-year timeline is ideal for investing.
- Looking back on how asset classes have changed can provide insight into the future trends.
[bctt tweet=”How you approach diversification can literally make the difference between your financial life blowing up and just being a little bit of a problem and that’s not an exaggeration, it’s just the fact. — Jeremy Roll” username=”Whitney_Sewell”]
Links Mentioned in Today’s Episode:
About Jeremy Roll
Jeremy Roll started investing in real estate and businesses in 2002 and left the corporate world in 2007 to become a full-time passive cash flow investor. He is currently an investor in more than 70 opportunities across more than $1 Billion worth of real estate and business assets. As Founder and President of Roll Investment Group, Jeremy manages a group of over 1,000 investors who seek passive/managed cash flowing investments in real estate and businesses. Jeremy is also the co-Founder of For Investors By Investors (FIBI), a non-profit organization that was launched in 2007 with the goal of facilitating networking and learning among real estate investors in a strict no sales pitch environment. FIBI is now the largest group of public real estate investor meetings in California with over 27,000 members. Jeremy has an MBA from The Wharton School, is a licensed California Real Estate Broker (for investing purposes only), and is an Advisor for Realty Mogul, the largest real estate crowdfunding website in the US. Jeremy welcomes e-mails (firstname.lastname@example.org) to network with or help other investors and to discuss real estate or business investments of any size.
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