The coronavirus brought home the need to have assets in more than one industry and place. Think of the fate operators of restaurants, hotels, entertainment facilities and more have experienced over the past few months. Through no fault of theirs, good businesses turned sour overnight. In the late 1970s and early 1980s oil companies were all the rage, then came a bust. In the early 1990s it was consumer product stocks, and the late 1990s were all about new internet companies, and on and on.
Diversification is not just about operating companies, real estate and other assets go through cycles as well. Just think about retail facilities or office buildings today compared to a year ago. Gold is now hot compared to its recent quiescence. Anyone who thinks they can stay ahead of these many changes is fooling themselves. One good stroke of luck is often followed by a bad move. Diversify and stay that away. Just focus on quality, this usually works to your advantage over time. Stay steady, my friends.