While researching a recent message, I stumbled across an interesting investment approach that a billionaire is using that matches my portfolio. Let’s call it the Turner Touch because this is how Ted Turner has diversified his wealth in this way.
My research was about ethical investing and led me to a New York Times article entitled “Bison Burgers for Humanity’s Sake”. You can read more about Turner’s buffalo restaurants at here, but only after letting what I read jell, did I realize that Turner had diversified just as I have. The article had pointed out that Turner had lost a great deal of money as his Time Warner shares had fallen, but that he was still worth 2.3 billion dollars.
This wealth was broken into the following segments:
Time Warner shares-his business $600 million
Ranchland and bison $700 million
Bonds and liquid investments $800 million
Then Turner started his buffalo restaurant chain to create what he calls, “another great fortune”.
There you have it…a portfolio breakdown of old business (Time Warner), rural land (that creates income), bonds and new ventures (buffalo restaurant chain).
This is virtually how my portfolio looks as well. See my updated breakdown at the Gary Scott site on Friday July 23, 2004.
More important, please share your thoughts about this type of portfolio diversification. Why would this make sense and why not?
Until next message, good investing.