Ravi
Diamond Member
He's not diversified if everything depends on his ability. But you go ahead and keep believing that.It might be a cliche but it is true.More wisdom from the "BIg Book of Worn-Out Investing Cliches."
Here we have the OP claiming all his life savings are in one basket (his own ability to turn a profit) and claiming that somehow because Obama is president his "businesses" have no chance of success.
He's either a fool or a liar.
No, it's not true.
Like most things, it's more complicated. Diversification is a substitute for knowledge. Most people cannot learn everything there is about a publicly traded company to know how they are doing. So they diversify.
In the case of the entrepreneur, he knows more or less everything there is to know about his company and its market. So he eliminates a lot of risk just through knowledge.
In fact the OP has separate discrete businesses so he is diversified. His complaint, justly, is that the gov'ts new mandates and taxes make it that much harder for an entriepreneur to operate a company succesfully. And he is right. Ijust had pretty much this conversation with a friend who owns a very large flower nursery, with over 70 employees.