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CHAPTER 2:

The fact that you’re asking why you should invest in REITs says something good

about you. It means you’re doing your due diligence instead of blindly buying

into whatever you’re told.

Good for you. I applaud and encourage that kind of curiosity.

In response, there are two simple and easy answers to be had… diversification

and dividend income. Both are crucial to a balanced portfolio.

Speaking on diversification, famous British investor, banker, and fund manager

Sir John Marks Templeton, who happens to have dozens of investment

opportunities named after him, declared that:

“The only investors who shouldn’t diversify are those who are right 100% of the

time.”

Called “the world’s greatest stock picker of the century” by no less than Money

magazine, Templeton was still only right about 66% of the time. Hence the

reason he was such a stalwart defender of the practice of diversification.

While that word can obviously be applied to so many areas of life in general,

when it comes to investing, diversification is the slightly artistic science of

organizing your portfolio to keep it growing at a long-term sustainable and

satisfactory rate.

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