Celebrating Diversity Gave Me a Headache in School, Now Wins in Investing
I grew up in a very politically-correct time, when learning about cultural differences and gender differences and socio-economic differences and every other difference made me think that there just wasn't a shared human experience. Certainly this is part of what resulted in my philosophy degree--but as I am now immersed in the world of investing, the angle on diversity now has new meaning.
Last week on the MPF Community Call, we talked about several ways you can leverage your self-directed IRA. Just think about all the instruments in which you can invest through your IRA!
Ok, not these kinds of instruments (aside), but I'm talking about purchasing Promissory Notes, purchasing a foreclosure property, or doing some land banking.Taking this kind of diversified stance in investing is the smartest move, even if it appears that "the industry" (as the media will just blindly blanket the world of real estate) is suffering.
The sentiments I offer above are echoed in this week's Wall Street Journal, under the auspices of an interview with Gerard Mestrallet. Who is this guy?
What this guy is doing is basically taking charge (again) of a new French energy company (GDF Suez) and is making sure that the company has holdings across "a diverse set of long-term contracts with gas suppliers." So, not only do they have different kinds of energy, but--get this--GDF Suez has contracts with Norway, the Netherlands, Algeria, Quatar, Russia, Egypt, Libya, Yemen, Nigeria, and Trinidad & Tobago.
This has got to be the most real commitment to the power of diversity I have witnessed in a very long time. If the US had the foresight to have as many friends in the energy-source department, maybe I wouldn't be hawking my yet unborn first child for a tank of gas.
What's more, if individual investors were as likely as Mestrallet to have such a diversified approach to investing (think sustainable, scalable, long-lasting, and diverse in the parties it is willing to do business with, I'd argue that there would be better chances for long-term success.
Fortunately or unfortunately, we live in the US, where diversity as a buzz word has had its moment. That being said, let's not forget that truly celebrating diversity does not only mean knowing about differences (thanks, college!) it is about exercising the power that comes with the depth of knowledge and having a lot of friends in a lot of places.
The sentiments I offer above are echoed in this week's Wall Street Journal, under the auspices of an interview with Gerard Mestrallet. Who is this guy?
What this guy is doing is basically taking charge (again) of a new French energy company (GDF Suez) and is making sure that the company has holdings across "a diverse set of long-term contracts with gas suppliers." So, not only do they have different kinds of energy, but--get this--GDF Suez has contracts with Norway, the Netherlands, Algeria, Quatar, Russia, Egypt, Libya, Yemen, Nigeria, and Trinidad & Tobago.
This has got to be the most real commitment to the power of diversity I have witnessed in a very long time. If the US had the foresight to have as many friends in the energy-source department, maybe I wouldn't be hawking my yet unborn first child for a tank of gas.
What's more, if individual investors were as likely as Mestrallet to have such a diversified approach to investing (think sustainable, scalable, long-lasting, and diverse in the parties it is willing to do business with, I'd argue that there would be better chances for long-term success.
Fortunately or unfortunately, we live in the US, where diversity as a buzz word has had its moment. That being said, let's not forget that truly celebrating diversity does not only mean knowing about differences (thanks, college!) it is about exercising the power that comes with the depth of knowledge and having a lot of friends in a lot of places.
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