Make informed market moves
In a 2017 report from Cambridge Associates, diversification was shown to be the more reliable option:
“Diversified portfolios still prevail over the long term… if those investors with highly diversified portfolios had abandoned that approach during the bull market of the 1990s, they would have earned lower long-term returns and have smaller portfolios today as a result.”
Clearly, Buffett’s long-range view is borne out by the market’s history.
Those looking to take the Warren Buffett approach to investing may consider buying index funds that track total market indices around the globe. That’s about as close to true diversification as one can get.
If you’re looking for guidance on how to beat the market like Cuban, then you’ll need expert advice.
The team of former hedge fund analysts and experts at Moby spend hundreds of hours each week sifting through financial news and data to provide top-tier stock and crypto reports to keep you up-to-date on what’s moving the markets.
Moby’s superior research can help you reduce the guesswork when selecting stocks and ETFs. In four years, across almost 400 stock picks, Moby's recommendations have beaten the S&P 500 by almost 12%, on average — that might be enough to turn even Cuban’s or Buffett’s head.
With their easy-to-understand formats, you can become a wiser investor in just five minutes, backed by a 30-day money back guarantee.
Alternatives to the stock market
For many investors, finding alternative asset classes outside of the stock market can be a great place to start diversifying.
Real estate
Real estate is a common alternative to the stock market, but owning a property and managing tenants can make this asset less appealing to those looking for a passive income stream. Residential real estate is also an option for diversifying your portfolio.
While high home prices and mortgage rates can make buying less appealing, prospective homebuyers are not the only ones sweating housing prices — rental prices are also high. According to Realtor.com, in April 2024 the median rent price for a two bedroom unit in the U.S. was $1,916.
However, you can make the most of high rental prices by investing in rental properties through Cityfunds.
Cityfunds allows you to invest in residential properties in top U.S. cities — like Denver, Austin, Nashville and Miami — without having to drain your bank account to put a downpayment on a home.
Here’s how it works: The company allows investors to invest in diversified portfolios of owner-occupied homes. In exchange for the cash, Cityfunds secures an interest in the home's future value. As the home value appreciates, so does the value of Cityfunds equity investment alongside the homeowner.
So you can invest in the housing market of a city you love for as little as $500.
If you’re searching for an investment that offers both stability and potential for tempting returns, commercial real estate might be the answer. Unlike the stock market, which can be highly volatile, commercial real estate provides steady income streams with generally lower volatility and a low correlation to the S&P 500, according to Nareit data.
First National Realty Partners (FNRP) allows accredited investors to access institutional-quality commercial real estate investments — without the leg work of finding deals yourself.
FNRP — one of the fastest-growing private equity firms — specializes in grocery-anchored commercial real estate. The firm has developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart and Whole Foods, and provides insights into the best properties both on and off-market.
FNRP’s secure online platform makes investing in commercial real estate convenient and simple. You can engage with experts, explore available deals and easily make an allocation, all in one personalized portal.
A creative alternative
For those looking to further diversify like a billionaire, investing in blue-chip contemporary art is also an option worth considering.
Over the past 25 years, contemporary art has outpaced the S&P 500 in performance making it a unique opportunity to diversify your portfolio outside the stock market.
In fact, fine art has historically outperformed the S&P 500, with contemporary art achieving an annual return of 11.5% from 1995 to 2023, compared to the S&P 500's 9.6% during the same period.
This is an asset class that has seen incredible growth in recent decades. But it’s also an asset class that has been historically largely out of reach for the average investor, due to the multi-million-dollar price tags of many of the most prominent (and quickly appreciating) paintings on the market. But Masterworks has changed that.
Masterworks is a top platform that allows retail and accredited investors to invest in fractional shares of blue-chip artwork from an impressive inventory that includes work from iconic arts like Picasso, Basquiat and Banksy.
For those looking to gain exposure to this particular asset class, the Masterworks team does the due diligence for you, vetting each piece with industry experts, with an ultra-low acceptance rate of less than 3%.
Get help building your own strategy
No matter what kind of investor you are, one thing remains true: having a team to advise you on key investing decisions is a good move. Both Buffett and Cuban have experienced teams behind them, supporting their decision making processes and providing key functions that a single individual simply can’t possibly accomplish on their own.
If you’d like to learn from an experienced professional, check out the matching service offered by WiserAdvisor.
WiserAdvisor matches you with vetted financial advisors suited to your unique needs. With no fees to get started, you can browse your advisor matches with their comparison tool and book a free initial consultation.
They’ll ensure your investments are on the right track— and help you spend less time worrying about them.
