When most people think of diversification, they think of a “well-diversified” portfolio of stocks, bonds, and mutual funds.  I think of diversification quite differently.

My overall strategy for diversification is based on several things, including:

  • My lack of trust in any one person
  • My lack of trust in any one company
  • My lack of trust in any one asset
  • My lack of trust in any one strategy
  • My desire to hedge my bets against economic downturns
  • My desire to participate in economic upturns

I invest in several different assets classes other than stocks in an order to diversify my overall investments.  The asset classes I generally invest in include real estate, farmland, p2p lending, cryptocurrency, precious metals, and stocks.

Within each asset class, I further diversify:

  • Across multiple companies
  • Across multiple platforms
  • Across different formats or types

For example, for my stock investments, I diversify as follows:

  • Multiple types of stocks, including:
    • Index funds
    • Growth stocks
    • Dividend stocks
  • Multiple (manual) investing platforms and brokerage accounts, including:
    • M1 Finance
    • Fidelity
    • TD Ameritrade
  • Multiple robo-investing platforms, including:
    • Schwab Intelligent Portfolio
    • Betterment
    • Wealthfront

With real estate, I diversify my investment like so…

  • Multiple companies and platforms, including:
    • FundRise
    • RichUncles
    • Individual REIT stocks
  • Multiple types of real estate, including:
    • Residentail
    • Commercial
    • Student Housing
    • Senior Housing
    • Manufactured Homes
    • Storage Units

I would consider myself to be hyper-diversified when it comes to investing.  While some may see that as overkill, I think it to be a wise method of protecting myself against a collapse or crash of one particular company or one specific asset type.

Hopefully this gives you some fresh ideas on how you can diversify your overall investment strategy.

I cover my diversification strategy, the assets that I invest in, and key factors in achieving financial freedom and wealth in my book Perpetual Wealth.