Diversify your assets.

[Die_empty]

The father of my colleagues invested heavily in real estate. Immediately after he retired from his job, he invested his entire retirement benefits in real estate. And he kept expanding the business by building more houses. My co-worker usually tells me that real estate is the best investment because of less risk. It is common for him to say that he or his father will never invest in Bitcoin because it has high risk.

There was a flood in a section of my country that destroyed lives and properties. His father lost about seven blocks of flats which is all he has in life. The houses were not issued, so he is totally broke.

Lessons
- Diversify your assets. Don't invest all you have in a single asset.
- If you are investing in real estate, let your properties be in different locations.  My friend's father lost all his property because they were in the same place.
- insure your assets and businesses. Insurance can help reduce the effect of a loss.

[freedomgo]

The main point here is to diversify your investments, it should be across different industries.

It’s understandable if his father chose not to invest in Bitcoin, since it’s undeniably a high-risk asset. But at the very least, he should have looked into other types of investments like food, retail, or any industry that could help spread the risk.

The problem is, sometimes we get too confident. We fail to consider that anything can happen, and we overlook the fact that every type of investment carries some level of risk even the ones we believe are the safest.

This ended up being a tough lesson for him, since he’s now completely broke. But someone with a true business mindset will always find a way to recover and rise again.

[Charles-Tim]

The houses were not issued, so he is totally broke.

You mean insured.

Before building house in an area, it is good to look for the possibility of flooding in that area. To make such analyses is not hard but people always neglect it.

You are right that it is not good to invest in just one asset, the best is to diversify. If he invested some money in bitcoin, he will still be rich by now if he did not touch the money invested.

[ancafe]

The father of my colleagues invested heavily in real estate. Immediately after he retired from his job, he invested his entire retirement benefits in real estate. And he kept expanding the business by building more houses. My co-worker usually tells me that real estate is the best investment because of less risk. It is common for him to say that he or his father will never invest in Bitcoin because it has high risk.

There was a flood in a section of my country that destroyed lives and properties. His father lost about seven blocks of flats which is all he has in life. The houses were not issued, so he is totally broke.

Every investment has a risk impact and before building the apartment did his father ever do a survey on flood events or was this the first flood that happened. If this was the first flood that happened that destroyed his father's seven apartment blocks, it was a disaster and we can never avoid it. Unless the area is often flooded and this is more of a human error because they were unable to study before building.

I agree about diversification but it is not necessary if someone invests in bitcoin because if they do not touch the investment then they will still get rich with bitcoin. The decision is up to each person but especially for bitcoin I think there is no need for diversification because we know how the movement of bitcoin can make someone get maximum wealth.

[Die_empty]

The houses were not issued, so he is totally broke.

You mean insured.

Before building house in an area, it is good to look for the possibility of flooding in that area. To make such analyses is not hard but people always neglect it.

You are right that it is not good to invest in just one asset, the best is to diversify. If he invested some money in bitcoin, he will still be rich by now if he did not touch the money invested.

Exactly, I mean insured. Thank you for the correction.

With the rate of global warming, it has become difficult to determine an area that wouldn't be flooded. These days, areas that have never been flooded are experiencing a flood. Another problem is poor infrastructure in some areas. Residents suspect that the flood was caused by the collapse of a nearby dam. The dam has not been maintained by the government for a long time, that was why it collapsed.

If he had invested in Bitcoin, he would have still had some money left if he still had access to his seed phrase.

[Jatiluhung]

The father of my colleagues invested heavily in real estate. Immediately after he retired from his job, he invested his entire retirement benefits in real estate. And he kept expanding the business by building more houses. My co-worker usually tells me that real estate is the best investment because of less risk. It is common for him to say that he or his father will never invest in Bitcoin because it has high risk.

There was a flood in a section of my country that destroyed lives and properties. His father lost about seven blocks of flats which is all he has in life. The houses were not issued, so he is totally broke.

Lessons
- Diversify your assets. Don't invest all you have in a single asset.
- If you are investing in real estate, let your properties be in different locations.  My friend's father lost all his property because they were in the same place.
- insure your assets and businesses. Insurance can help reduce the effect of a loss.

Thank you sir for sharing true stories and experiences from your post. This can indeed be a lesson for those of us who still invest in just one area and do not divide our investments into more instruments. I also have investments in real estate. But I'm not fully invested there. I also invest in shares. And after getting to know Bitcoin I started reducing my investment in shares and started putting it little by little in Bitcoin. And to date I actually invest more in real estate. But I first analyze the various risks that will occur. Like if I were to buy land. then I will make an analysis regarding whether it is a disaster-prone area or not. And I also have to estimate the potential of the land, whether it has the potential to increase rapidly in price or not. And usually I like land on the outskirts of town. In the end, the suburbs will one day also become cities. And currently there are many complaints about expensive house rentals in the city center. And then many are looking for an alternative by renting a house on the outskirts of town. So that one day a busy life will also occur on the outskirts of the city which will bring the price of land there to rise rapidly.

[Cityhunter34]

That is what most people failed to understand, without realizing that when money is only coming from one source once anything happens along the line everything is gone. Sometimes I used to wonder why most people normally have since mentality of having only one source of income, more especially this real estate investment. To be honest nothing good as diversifying your assets, because nobody can really predict what would happen at any given time. Because had it been he put some of his money into Bitcoin investment by now he would have something left.

[Maslate]

If he had invested in Bitcoin, he would have still had some money left if he still had access to his seed phrase.

It’s easy to say now, since we already saw the results. But what if Bitcoin never went up? He probably would’ve ended up regretting that investment.

Still, you're right, diversification is really important. Maybe a mix of crypto, if he truly understands it, and some real estate would’ve been a smarter move.

But the thing is, not all investors have enough capital to diversify right away. Some take big risks on what they believe could bring high returns first, hoping to diversify later. Unfortunately, in his case, failure came before success had a chance to happen.

[viljy]

Of course, it is advisable to insure real estate, and especially against disasters such as fires. If the danger of flooding is only in some regions, then a fire is always dangerous. In principle, under the condition of insurance, it is not necessary to have real estate in different locations.

Although, of course, it is possible to invest only in real estate in politically stable countries. Whether in the future (real estate is a very long-term investment) the countries that we now see as such will be politically stable is a very big question.

[Zaguru12]

The father of my colleagues invested heavily in real estate. Immediately after he retired from his job, he invested his entire retirement benefits in real estate. And he kept expanding the business by building more houses. My co-worker usually tells me that real estate is the best investment because of less risk. It is common for him to say that he or his father will never invest in Bitcoin because it has high risk.

There was a flood in a section of my country that destroyed lives and properties. His father lost about seven blocks of flats which is all he has in life. The houses were not issued, so he is totally broke.

When I hear people say there is no risk in a business I simply just chuckle because even life itself is a risk, we just need to calculate the risk and apply good management to it. Personally I don’t blame him for going into real estate totally it has been the mentality of our people to actually go into something that generates them money and not looking back at other areas. In this story the lesson is way more than the diversification alone it also teaches about security.

One thing people like to do when investing is to look for cheaper ways and less costly alternatives that could bring about more profit to them instead of prioritizing the security challenges, he might have invested in those areas because it is way less cheaper than the other areas, he would had also left out insurance due to time and money that it will cost him.

This is the exact same thing with some bitcoin and cryptocurrency investors they simply just over look security cases like a very good wallet set up (cold wallet) for their investment just because of the hassle. Some even go as far as leaving it on centralized exchanges. Some do not diversify the back up to other places in case of natural disasters

[Call_Me_Guru]

The day you know there is no certainty anywhere, is the day you start planning with good factor of safety, diversification of investment is one of them. The world will guaranteed nothing no matter how perfect it looks from the outside, many would tell their stories of good, bad and ugly, it has always been like that.

Real Estate investment is good, to the extent that people had started with $100 or lower and has built million dollars empire with it. But this is not immune from failure because bad luck and wrong choice can plague people more than they bargained for. The story you narrated is one of the bad luck and wrong choice examples, inexperience also adds to it, we should learn the investment before doing it.

The environment, what the location is earmarked for, its topography, government's future plan are few out of the factors to consider before investing in real estate.

[Samlucky O]

The father of my colleagues invested heavily in real estate. Immediately after he retired from his job, he invested his entire retirement benefits in real estate. And he kept expanding the business by building more houses. My co-worker usually tells me that real estate is the best investment because of less risk. It is common for him to say that he or his father will never invest in Bitcoin because it has high risk.

Even as they preferably chose real estate over Bitcoin does not mean that real estate is more  profitable and less risky than Bitcoin investment. I preferably chose Bitcoin investment over real estate. Anything investment is highly risky regardless of the way it appears. There are people that invested into real estate and they didn't get any better thing in return before the project collapse And leave others wondering.

[kotajikikox]

Lessons
- Diversify your assets. Don't invest all you have in a single asset.
- If you are investing in real estate, let your properties be in different locations.  My friend's father lost all his property because they were in the same place.

If you wanted to invest in some real estate, there are other options aside from houses. You can invest now in airbnbs or vacation homes. Apartment buildings or business complexes can be invested in as well.

- insure your assets and businesses. Insurance can help reduce the effect of a loss.

Some people might not like this because of how expensive it is but it is helpful during times of crisis.

[Perfectbaby]

One thing you must know about people is that they don't usually think vast about whatever investment they are doing, for instance if Mr wants to venture into a particular business they wouldn't consider the risk involved before venturing what think only is about their profits and to what they could benefit from that investment. But sometimes when the disadvantages comes they lose more, so diversifying our investment across the country/states is also more better than channeling it to a particular area, although digital currencies investment such as Bitcoin, Gold and others could also help more better.

[Akbarkoe]

The father of my colleagues invested heavily in real estate. Immediately after he retired from his job, he invested his entire retirement benefits in real estate. And he kept expanding the business by building more houses. My co-worker usually tells me that real estate is the best investment because of less risk. It is common for him to say that he or his father will never invest in Bitcoin because it has high risk.

There was a flood in a section of my country that destroyed lives and properties. His father lost about seven blocks of flats which is all he has in life. The houses were not issued, so he is totally broke.

Lessons
- Diversify your assets. Don't invest all you have in a single asset.
- If you are investing in real estate, let your properties be in different locations.  My friend's father lost all his property because they were in the same place.
- insure your assets and businesses. Insurance can help reduce the effect of a loss.

I want to say that this is a mistake when you have an apartment in the same area, so if a natural disaster occurs it will destroy everything you have, this can happen if you store your assets in gold or whatever in the same place, if the thief takes it then you will lose everything, and for example if you store bitcoin in only one wallet, because you could be phished or store bitcoin in one exchange that you don't even hold at all.

This is one form of learning that we need to recognize a risk in every asset where there will always be a bad risk that can happen to your assets, diversification is a form of action to anticipate losses as a whole when having a disaster, damage or any form that makes its value disappear.

[Minor Miner]

But the thing is, not all investors have enough capital to diversify right away. Some take big risks on what they believe could bring high returns first, hoping to diversify later. Unfortunately, in his case, failure came before success had a chance to happen.

This is the point that many people are missing. The purpose of diversification is to minimize risk, so people with large capital should absolutely not ignore this. But for those with small capital, diversification can become a barrier as it can reduce their returns. Therefore, this will depend on many factors such as capital, assets, and investment appetite of each person. Diversification is not always good and brings maximum efficiency.

I'm not against diversification, but if someone has a modest amount of capital and is willing to take risks, they should focus on one investment like bitcoin. That will help them get better returns than allocating that small amount of money to gold, stocks...

[Salahmu]

Sad story for the man and his entire family to have lost the investment he thought does not have risk into flooding, actually there are investment that seem not to be accompanied by any risk but sometimes what could came out as a risk will be surprising, for those doing real estate businesses the risk they always have is the flood because there is how serious it will be any building within the whole area affected might be brought down and any investment made there will be gone and the only thing that would be Left is the land, so however if the man had not been doubtful about Bitcoin all his money wouldn't have perish just like that.

[slapper]

The best investment is always simply a narrative. Real estate is common , gold was popular ten years ago, and now it's bitcoin, stocks, or just holding cash and waiting. People hold on to what has worked in the past because it seems comfortable, but they rarely think about if that safety is a habit. Some people especially (and honestly, a lot of traditional thinkers) fixate on control and predictability. There is a reason behind it, but it's generally more about comfort than reality

Every asset has its own black swan  and no one think about it. Real estate is less risky until the weather changes, your insurance runs out, or something crazy like your flood wipes away years of work. Crypto is risky, sure, but at least its volatility is open knowledge. The sad tragedy is that certainty makes things fragility. The best systems (in evolution, portfolios, and personality) are the ones that are open to the idea that they could not know everything and plan for that

Nobody wants to talk about non-attachment in investing. It feels cold, like giving up on legacy. But the truth is that putting all your hopes and dreams on one story (one neighborhood, one ideology, one tech, one belief  about how the world works) is a way of making yourself blind. It's not only about money when you diversify; it's also about being humble and acknowledging that you're not the best. Are we truly diversifying, or are we just repeating what worked for the past successful generation and calling it strategy? We sometimes have to learn the hard way, and then understand that being able to adapt is the most important thing

[Felicity_Tide]

~snip

Lessons
- Diversify your assets. Don't invest all you have in a single asset.

In other words, don't put all your eggs in one basket.
Investment in general isn't restricted to turning capital into assets alone, but safeguarding the assets for as long as possible. Your colleagues father invested right, but unfortunately fell a victim to natural disaster, due to what most people don't put into consideration. It's a crazy experience for one to loss all what has been worked for.

Why do we keep emergency funds aside?, just so we can fall back to something. But when it comes to investment, some people also fail to set investments aside probably because they don't expect anything terrible to happen along the way. Just imagine if your colleagues father had invested half or 1/3 of what he had in real estate, on Bitcoin. What a sad story...

[Sanitough]

Thank you for sharing OP. This serves as an eye-opener for us to never put all your eggs in a single basket. You might be in profits today, but we don’t know what’s up for tomorrow, so we should never be too much confident on a single asset or investment, but always do the initiative to diversify and spread out as much as possible.

Real estate is a good and profitable asset, and we can even leverage it to secure wealth in the future. However, as natural calamities are inevitable, they can always damage our real estate without prior awareness. So it’s best to spread out the place or location of your real estate, to avoid losing them all at once especially when natural calamities hit your area.