The strongest portfolios are built with specialists, not one all purpose investment.
Real estate is one of my favorite asset classes, but I do not expect it to do everything.
My firm manages more than $290 million in real estate, and I believe it is a great foundation for building wealth. Even so, real estate is a jack of all trades. It can provide growth, income, and tax benefits, but it is not the best at every job in every market.
That changed the way I think about investing.
Instead of relying on one asset class, I build my portfolio around specialists.
I use three core asset classes that each have a primary role. Real estate focuses on growth. Oil and gas supports tax efficiency. Private credit provides income.
Each one contributes to income, growth, and taxes, but each has one job it does best.
Because these asset classes do not always move together, one can help support the portfolio when another is having a weaker period.
That is the goal. Build a portfolio where every investment has a clear purpose.
Does every investment in your portfolio have a specific job?