For some reason it didnt show the distinct characters from my original post.

Diversification Protection.

its a such nice day today, have a good weekend.

Thanks
Will,
PS1: Sorry for the typo.
PS2: Here is an interesting thing from dictionary.com: definition of “diversification”, man here is the root of all the problems!

The act or practice of manufacturing a variety of products, investing in a “variety of securities”, selling a “variety of merchandise”, etc., so that a failure in or an economic slump affecting one of them will not be disastrous

I am sorry to ask this but what is expeculative? There is no definition for it at dictionary.com. Do you mean speculative? No worries but we need it clear.

If you watch the video and read the text, you will find we are agreeing. Carnegie never said put your egg in one basket. He said put your eggs in one basket. This is what we are saying too.

When you know what you are doing, you don’t put money in 5 different things. You put your money where you know it works.

Again, diversification, as we are attacking it, is ineffective and harming American families. It only protects against ignorance. I think people should go out and learn something, eliminate the ignorance and work it.

If people would listen to you and I, focus their effort in their “context of knowledge” we would be better off a individuals and a county.

Does this make more sense?

Thanks again,
Steve

why is an expeculative example? ask any financial planner about the best products, if somebody offers you 100% returns, my advise is runaway, that is not an investment, thats expeculation.

Going back to my point, the root of the problem (I think) in the example (besides its not likely in a 401k enviroment) its expeculation, not diversification.

Do rich people diversify? Yes within their context of knowledge.

Bill Gates in the software arena has operating system, spreadsheet, wordprocessing, search engine, etc => Diversification.

W. Buffet under his firm, holds anykind of instruments (stocks, bonds, warrants, options, etc) for several companies => Diversification.

Thanks
Will

It’s not clear what you are talking about…what presumption are you concerned with?

You are 100% correct that people can lose money by speculating in real estate. But we don’t speculate. We are investors. As investors we make money in both the up and down market (and so will you.)

Speculation is gambling, regardless of whether it is in real estate, stocks, pork bellies, soybeans, gold, etc. I hear stories all the time about people who lose money in speculative real estate. That’s why we don’t teach speculating in real estate, we teach investing in real estate.

Thanks for the continued dialog. Great input. I also hope our responses are coming out respectful. Love to hear more from you.

Second: Gambling depends basically in your approach, independently the nature of the beast (ie FL, CA realstate).

I think it will be fair compare apples vs apples.

Thanks
Will

Thanks
Will

1. Don’t Lose Money. A 401k invested in stocks, bonds, mutual funds, etc. has the possibility of losing value (I.E. last year). Buying real estate at $.50 on the dollar puts you in an instant equity position and dramatically decreases your risk.

2. It Has to Cashflow. Unless you are invested in stocks or bonds with high dividend yields, most 401ks do not cashflow. Remember that capital appreciation is not cashflow.

3. You Can’t Get Rich Slow. What is the average return of most mutual funds or stocks? Some say 12%… some say that it’s only 6% when you account for fees and inflation. Even if you hit it big and get 50% every once in awhile, you are still looking at a long process. Getting 100%, 200%, and even infinite gains (see our video case studies) is how you get rich quickly.

In a 401k for example you wont have this scenarios in place by nature, the mayority of the options for their portfolios are long.

To illustrate what Im talking about, please to anyone who is reading this, If you have a 401k account please login and check all the investments options available and you will notice the YTD’s return is positive for all of them.

Thanks,
Will