The Importance of Diversification
Just a few years ago I was at a very expensive leadership seminar for five full days with a young Christian entrepreneur: he was a multi-millionaire who had brought the seven presidents of his seven companies for the training. I was impressed with the owner’s humility, wisdom, and his presidents. To look at this man – one would think he was just a regular guy. However, more than his entrepreneurial spirit and obvious business success I was amazed that his ultimate goal in life was to give over one billion-dollars to world-wide missions for the spreading of the gospel! During one of the lunch breaks I asked him what his philosophy of investing was – here was his reply:
Solomon spoke about diversifying into seven areas. This is in Eccl 2:4-8. He was the wisest man that ever lived and also the richest. That is one reason why I have been working so diligently to diversify into at least seven different businesses, and not just be in one industry.
Solomon did take his own advice. Here are a few of his businesses:
1) trucking (hence all the camels)
2) textiles ( hence all the sheep)
3) import-export (hence all the trade routes)
4) retail stores (hence the import-export)
6) real estate
I’m sure, many, many more businesses. So, how can the average person diversify???
1) real estate (own your home)
3) stocks and bonds
4) metals (gold and silver coins)
6 a business?? perhaps based on a hobby??
7) life insurance or annuity
Of course laying up treasures in heaven gives the best returns. If you can consistently get 10% a year for a few years, you are a genius. If you send it on ahead, you’ll get 1,000% a year, for FOREVER!