Many investors keep putting money into the sector they know. One Ticker Tape investor had spent six years as an expat in Egypt, earning more than he could spend, and invested only in oil and gas deals because that’s what he knew. Our response: you need diversification.
Sell some of what you’re concentrated in if you can, take money off the table, and move into real estate, pre-IPOs, Bitcoin, and gold and silver. The hard part is evaluating deals outside your expertise. If you don’t have a tech background, how do you evaluate a tech company? Find people who have that expertise and rely on them.
Key points
- Investors tend to keep investing in the one sector they know.
- Concentration is the opposite of diversification.
- Spread into real estate, pre-IPOs, Bitcoin and precious metals.
- Rely on people with expertise when evaluating unfamiliar sectors.
Accredited investors: learn about current opportunities at tickertapeinvestments.com.
