A recent article in The Wall Street
Journal, featured an investment profile of Sallie Krawcheck, Chief Executive
and co-founder of Ellevest, a
digital financial investment firm for women.
She was also Citigroup’s chief financial officer and also lead Merrill
Lynch Wealth Management.
She characterized the purchase of a
house on the East end as her best investment and the purchase of the bank stock
of the firm she worked for as her worst investment. The home she bought in 2004 in Quogue, with
money from stock at Citigroup, is almost double the value today. The Bank of America stock she bought in 2009
and sold in 2011, returned her only half the value.
“ ‘The real takeaway, of course is diversity,
diversity, diversity,’ she says. ‘I diversified away from Citigroup stock and
into real estate.’ Her portfolio at the
time was not nearly as diversified as it should have been, she says. Her
financial adviser at the time said she could survive a hit to her Citi stock,
but so much of her other assets were tied up in equities, too, leaving her far
too exposed.”* Diversity is an investment strategy we should all be mindful of,
especially in recent weeks with the volatility of the stock market.
The other important investment
strategy is timing and “timing is everything!”. A wise saying, attributed to William Shakespeare, coined
in 1599, in his play Julius Caesar. Buying and selling investments profitably, is
a function of timing but none of us have crystal balls to tell when it’s
optimum to buy or sell a particular investment. All the more reason to
diversify to balance the mix of investments to protect from extreme losses in
any one investment category.
If you have most of your investments
in the stock market, perhaps it’s time to diversify into real estate? Perhaps it’s time to explore and
diversify? We can help you with the real
estate side of your exploration, just call us!
At Beninati Associates, we’re looking out for you! Our office is conveniently located at the
corner of Main Road and Hortons Lane in Southold; telephone to 631 765 5333;
email to marie@beninatiassociates.com. Talk to you
soon!!!
*Source: The
Wall Street Journal, March 5, 2018, A
House Was Better Than Her BofA Stock, page R8.
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