I find that its alway better to be world class at one thing rather than becoming average at 10 things.
For investment, people often ask me why I only invest in cashflow based properties and not other property asset class or other investment vehicles.
I dont invest in equities, precious metals, bonds, etc either.
My standard answer :
I can buy and make money from cashflow properties with my eyes close.
I cant do the same if I look at other non- cashflow driven products like landed properties, land or shops.
So my risk is a lot higher if I look at non-cashfow assets as I will be playing outside of my core-competency”
Basically, I’m not willing to take on unnecessary risk just for the sake of “diversifying” or portfolio expansion.
Plus I believe that by being a specialist, I’m good enough to get similar if not better returns by investing in things that im familiar with.
The best property I own has gone up in values by 300% in just 10 years, and my worst still went up by 30% in 4 years, so I shouldn’t be complaining.
I also applied this concept in business as well.
For example, my Sarjana Hartanah covers largely cashflow based properties.
It’s all about minimising risk first, then only look at optimising returns.
It’s what I’m good at and Im comfortable teaching as its something that I have done many times in the last 10 years.
I am not shy to admit I dont know everything and I have always “import” panelist with various backgorund and expertise to share their experiences on shops, land and other non cashflow asset types (things that Im not familiar with) so that Sarjana Hartanah participants gets full exposure.
I only teach what I know, and what I dont, I will happily outsource to their respective experts in the subject matter.
So I’m not gonna be shy to admit that I have limited specialisation/expertise.
I prefer to be a leading expert in a single subject rather being mediocre at many things. As Warren Buffet adequately puts, “You only have to do very few things right in your life as long as you dont do too many things wrong”.
By being a specialist, one can improve their chances of doing these few right things makes less mistakes along the way.
After all, if you have a heart problem, would you rather see a GP (General Practise) at a local clinic or go to a cardiologist that works in Institut Jantung Negara?
I prefer to get my heart checked by the best cardiologist in IJN.
What about you? ^^
P/s : Jan Koum founded Whatsapp and sold it to Facebook for USD 19bil ^^