You may inquire as to why I chose these investments

You may inquire as to why I chose these investments rather than considering portfolio management or diversification theories as the majority of others do.

Simply put, I believe that many things that are beyond our scientific comprehension are governed by nature’s law; Additionally, breaking nature’s laws is not smart.

Take, for instance, the fact that sardines swim together in the ocean. The sharks do the same thing. Similar trees grow together in a natural forest. This is the idea that things that are alike attract each other because they share an affinity.

You can see the people you know around you. Most likely, the people you spend more time with are in some ways similar to you.

It would appear that a law of affinity is at play, which states that similar things produce similar things; whether they are rocks, animals, humans, or trees. What would make an investor and their investments different, in your opinion?

Therefore, in my opinion, the issue is not always which investment performs best. Instead, it comes down to which investment is best for you.

You are more likely to be attracted to properties if you have an affinity for them. Shares are likely to be drawn to you if you have a love for them. Good cash flow is likely to be drawn to you if you have an affinity for it. Good capital growth is likely to attract you if you like good capital gain (but not necessarily good cash flow).

Spending more time and effort on something can improve your affinity to some extent, but there are some things with which you have a natural affinity. You should go with these because they come easily to you. Can you imagine how much work it would take for a shark to change into a sardine or vice versa?

We have spent a lot of time lately working on our clients’ cash flow management because it is unlikely that our clients will have good cash flow from their investment properties if they have low affinity for their own family cash flow. Keep in mind that it is a natural law that like things lead to like things. Poor cash flow management at home typically leads investors to invest in businesses or investments with poor cash flow.

Have you ever pondered the reason why some of the world’s most successful investors, such as Warren Buffett, only invest in a select few highly concentrated areas with which they have a strong affinity? He has more money than most of us, so he could afford to try a lot of different things. However, he sticks to the few that have worked for him in the past and cuts out the ones that didn’t work, like the airline business.