Investment Advice Which Stands the Test of Time
There is investment advice in the book of Jewish religious law (the Talmud).
It advises that you keep 1/3rd of your wealth in business, 1/3rd in land, and 1/3rd in gold.
It's genius.
Why?
First, it's simple.
Second, business, and, to a lesser extent, land, (but not gold, usually) can make you wealthy.
But the real genius is its protection against RISK.
Think about the bad luck that can happen to you throughout your life and how a Talmud portfolio of business, land, and gold would perform in reply.
1. Health problems might wipe out your gold and prevent you from operating your business, but even a sick person can collect rent from their land.
2. Divorce may result in your losing your land and gold, but no significant other wants to run your business.
3. Theft may cause you to lose you gold and business, but it's hard to take your land.
4. Anger the wrong person in government and you can lose your land and business, but you can almost always keep your gold.
5. Lawuits may result in the loss of your gold and land, but no litigant wants to run (or can run) your business.
6. Inflation can end your business and depending on what type of "gold" you use, can harm that as well, but land will hold its value.
There are many more things like this from invasion to natural disaster, and this Talmud portfolio, while conservative, almost always manages to survive.
Yes, it's no longer 500 AD, and technology has changed the nature of business, land, and gold, but the principles remain strong.
Life is so complicated. Maybe the Talmud portfolio isn't the proft-maximizing perfect one for this time in history, but you'll do fine with it and it'll almost certainly never leave you broke.
