Investment is by far the most effective way of doubling your net worth. Regardless of your family or educational background, there is always room for you to create your own investment portfolio. If you want to follow some of the most powerful and widely successful investors of our time – like Warren Buffet and Larry Elison – you can see that they have one thing in common: They are not afraid of taking risks.
Secondly, they diversify their investment portfolios. In other words, they do not put all their money in gold or real estate, and instead, they carefully distribute their investment into short and long-term investments. In turn, if one does not pay off well, the other one does and this diversification can minimize your risk, exposure and the disastrous effects of a potential loss.
Do Not Put All Your Money Into One Investment Portfolio
“The most common mistake that a vast majority of newbie investors make is they put all their money in one investment portfolio,” says Warren Buffet. He suggests that just because an investment portfolio works for some, like him or other seasoned investors, does not mean that it should work for you as well. “Do your own research and be a literate investor,” he emphasizes. “Once you know what you are doing holistically, try diversifying your investment portfolios as much as you can.”
It is obvious that investment comes with risks. It is by no means a magical wind that will double your money overnight. Rather, it is a consequence of consistent failures that you learn from and become a successful investor.
Thus, there is no “safe haven” investment portfolio that will make you rich quickly. However, there are some investment portfolios that are credible. Certain successful investors have tried them and they have worked out for them. Here is the list of them:
Investment in gold does not come without risks, that is for sure. However, compared to other investment portfolios such as real estate, the risk of a loss are lesser. One of the major benefits of investing in gold is its high demand accompanied by inflation. Certainly, if the inflation rate is high, the price of gold will also go high – like it is today. And the demand for gold is always high.
Theoretically speaking, if you invest in gold today when the inflation rate is soring, you are very likely to get double the amount of the invested price in 2023. Similarly, gold will also unleash new paths for your investment to be diverse.
Other Potential Investment Portfolios that Will Make Your Portfolio Diverse
Apart from investing in gold, you can also look for other available portfolios that have low risks. The most popular two of them are:
- Treasuries or Bonds
- Brick & Mortar Properties
So, try them out with short-term goals. Also, make a combo of these investments= portfolios with the long-term ones. This will make you sure that the risk of loss is lesser. For worse, if you face a loss on one portfolio, it will not be a major financial shock for you.