How to Money · Friday, July 3, 2026
The hosts point out that real estate investing is not a diversified investment, often involving a large sum of money in a single asset. This lack of diversification, combined with external factors beyond an investor's control, increases the risk compared to the stock market, which offers broader diversification.
“But another important distinction to make is that real estate is not a diversified investment. You know, we're talking about putting a lot of money into a single investment. So you're betting a lot of marbles.”
“The stakes are just higher.”
“It's important to note that because you're already plenty diversified by holding hundreds or even thousands of stocks in that total stock market fund or the S and P five hundred index fund.”