Additional Diversification

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Lots of things came out of my long family vacation this year despite being disconnected from most things around my daily life such as investing. However, investing for me is a passion and always remains top of mind for me. One of the early lessons I learned in both academics and in practice is the importance of diversification. I truly believe that capital allocation is the key indicator of overall performance and sustainability over the long term. As such, I have always looked to allocate minimal amounts of capital in search of great returns.

While most have really been misses and losses over time, it has always been an amount of capital that will not deter my lifestyle or said another way, it would not break the bank for my family and me. I have gotten important “home runs” with this approach as buying bitcoin under $1,000 falls in that bucket. It surely wasn’t enough but that was never my approach. The great part of this approach is that it also allows me to expand my knowledge as I research the asset class or investment more deeply as part of my diligence.

However, this latest addition is probably more of a FOMO or YOLO approach as I have no real knowledge of the asset class other than it is a class that has grown over history. Yes, it is the asset class of Art! I am not completely new to it either as my parents left me two works of original art which I cherish today and have been told could fetch a good amount. I like to keep them in my office as a reminder of them and what they did for me to achieve an education which was the foundation of my success.

During the Cruise, I participated in a number of seminars and auctions to learn about some of the artists in the spotlight. I found some of the stories to be both relatable and interesting which drew me into the process. Recall that we have also just celebrated a year in our new home and we indeed have a vast amount of wall space to consider for some art. Maybe it was more of an impulse but we walked away with a couple of additions for our home. Each had some great stories and meaning.

Whether I could consider them investable, not sure… It will be part of my learning I need to do but am interested in learning more about for some odd reason. However, once again, I ensure that the amounts invested would not be an overstep in my overall diversified portfolio and its capital allocation. I am sure I bought overpriced but it was something to get me interested and “my feet wet.” It was exciting and new and look forward to exploring more in the future!

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Additional Diversification | Ecency