People don’t know their true tolerance for risk until they’ve had a real-life experience taking a significant loss. - Tony Robbins

Brokers are butchers, while fiduciaries are dietitians.

You’ll learn more about this in chapter 4.1 on asset allocation, but for now, just know that if real estate’s mantra is “Location! Location! Location!” then the mantra for getting better returns while reducing risk is “Diversification! Diversification! Diversification!” Effective diversification not only reduces your risk but also offers you the opportunity to maximize your returns.

When I talked with David Swensen, Yale’s chief investment officer, he told me that “unconventional wisdom is the only way you can succeed.” Follow the herd, and you don’t have a chance.