Latest news with #diversification
Yahoo
12 hours ago
- Business
- Yahoo
How To Diversify Your Portfolio With Real Estate and Emerging Tech
If you've heard one piece of investing advice, it's that you need to diversify your portfolio. It sounds good, but as you nod your head, you might wonder how exactly you can go further than the healthy mix of asset classes, sectors and even geographic regions you already have in place. Learn More: Check Out: However, every smart investor — whether you've been swimming in the sea of stocks for a while now or just started dipping your toe in — knows that you've got to regularly review your portfolio to determine when and how to change things up. Adding real estate investments, as well as companies that produce emerging technology, can provide new opportunities for growth while helping manage risk over time. While these industries may be new to you, it's easier to get started investing in them than you might think — especially if you follow a few simple tips. One of the core benefits of adding real estate to your portfolio is the fact that real estate doesn't always trend with the stock market — meaning that even if there's volatility on Wall Street, that doesn't mean it'll hit your investments on Main Street. In addition, property values generally tend to increase over time due to factors like inflation, demand and limited land supply. You also enjoy great flexibility in how you approach real estate investing: You have the option of buying a property, or multiple properties, so you can rent them out to other people, either as long-term rentals or short-term vacation stays through platforms like Airbnb or Vrbo. Even if being a landlord seems overwhelming to you, you can outsource the day-to-day management to a property manager. If your rental income covers those costs, you could still walk away with a solid profit. Explore More: That said, if you don't want to take on the responsibilities of direct, hands-on property ownership — or don't have the capital to do it — you might consider a real estate investment trust (REIT). A REIT is a publicly traded company that owns or finances income-producing real estate, such as shopping centers, apartment complexes or office buildings. You can buy shares in a REIT just like you would a stock through any brokerage account. The perks of investing in a REIT? It's highly liquid and requires a low minimum investment. It also pays dividends regularly, typically on a quarterly basis. That said, because REITs trade like stocks, you do have less control over the underlying assets and may experience market volatility. There's a whole world of emerging technologies out there, from AI to blockchain to green energy, and they're attractive investments not only because they reflect the direction of the future, but also because they allow you to put your money into areas that excite and inspire you. If you're excited about the potential of artificial intelligence, you can invest directly in AI-focused companies like Nvidia, Microsoft or other firms partnered with OpenAI. You can also explore AI-specific ETFs and mutual funds that provide broader exposure. If blockchain or crypto sparks your interest, you can invest in cryptocurrencies directly or in blockchain-related stocks, such as Coinbase. There are also blockchain ETFs and other investment vehicles focused on building infrastructure, scalability and security in the decentralized ecosystem. Environmentalists who want to invest in green energy have their pick of renewable energy stocks and green bonds, which finance eco-friendly initiatives. You can also consider ETFs and mutual funds centered around environmental, social and governance (ESG) criteria. When you're assembling your real estate portfolio, you can further diversify by property type — residential, commercial, industrial or even vacation rentals. Likewise, with emerging tech, spreading your investments across different sub-sectors like AI, biotech, clean energy and blockchain can help reduce risk while boosting potential returns. To put it simply: Real estate can provide recurring income, through tenant rent or REIT dividends, while also helping to hedge against inflation. Emerging tech, on the other hand, may offer a little more sizzle in terms of growth potential, though it tends to be more volatile and may not produce consistent short-term cash flow. As always, your best strategy is to regularly review your portfolio and make sure it aligns with your goals and risk tolerance. Diversification isn't just about owning many different investments — it's about owning the right mix to support your financial future. More From GOBankingRates 4 Things You Should Do When Your Salary Hits $100K If a Financial Advisor Doesn't Ask These 5 Questions in Your Consult, Keep Shopping 5 Steps to Take if You Want To Create Generational Wealth Robert Kiyosaki: 5 Money Habits of People Who Retire Early This article originally appeared on How To Diversify Your Portfolio With Real Estate and Emerging Tech Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12 hours ago
- Business
- Yahoo
How To Diversify Your Portfolio With Real Estate and Emerging Tech
If you've heard one piece of investing advice, it's that you need to diversify your portfolio. It sounds good, but as you nod your head, you might wonder how exactly you can go further than the healthy mix of asset classes, sectors and even geographic regions you already have in place. Learn More: Check Out: However, every smart investor — whether you've been swimming in the sea of stocks for a while now or just started dipping your toe in — knows that you've got to regularly review your portfolio to determine when and how to change things up. Adding real estate investments, as well as companies that produce emerging technology, can provide new opportunities for growth while helping manage risk over time. While these industries may be new to you, it's easier to get started investing in them than you might think — especially if you follow a few simple tips. One of the core benefits of adding real estate to your portfolio is the fact that real estate doesn't always trend with the stock market — meaning that even if there's volatility on Wall Street, that doesn't mean it'll hit your investments on Main Street. In addition, property values generally tend to increase over time due to factors like inflation, demand and limited land supply. You also enjoy great flexibility in how you approach real estate investing: You have the option of buying a property, or multiple properties, so you can rent them out to other people, either as long-term rentals or short-term vacation stays through platforms like Airbnb or Vrbo. Even if being a landlord seems overwhelming to you, you can outsource the day-to-day management to a property manager. If your rental income covers those costs, you could still walk away with a solid profit. Explore More: That said, if you don't want to take on the responsibilities of direct, hands-on property ownership — or don't have the capital to do it — you might consider a real estate investment trust (REIT). A REIT is a publicly traded company that owns or finances income-producing real estate, such as shopping centers, apartment complexes or office buildings. You can buy shares in a REIT just like you would a stock through any brokerage account. The perks of investing in a REIT? It's highly liquid and requires a low minimum investment. It also pays dividends regularly, typically on a quarterly basis. That said, because REITs trade like stocks, you do have less control over the underlying assets and may experience market volatility. There's a whole world of emerging technologies out there, from AI to blockchain to green energy, and they're attractive investments not only because they reflect the direction of the future, but also because they allow you to put your money into areas that excite and inspire you. If you're excited about the potential of artificial intelligence, you can invest directly in AI-focused companies like Nvidia, Microsoft or other firms partnered with OpenAI. You can also explore AI-specific ETFs and mutual funds that provide broader exposure. If blockchain or crypto sparks your interest, you can invest in cryptocurrencies directly or in blockchain-related stocks, such as Coinbase. There are also blockchain ETFs and other investment vehicles focused on building infrastructure, scalability and security in the decentralized ecosystem. Environmentalists who want to invest in green energy have their pick of renewable energy stocks and green bonds, which finance eco-friendly initiatives. You can also consider ETFs and mutual funds centered around environmental, social and governance (ESG) criteria. When you're assembling your real estate portfolio, you can further diversify by property type — residential, commercial, industrial or even vacation rentals. Likewise, with emerging tech, spreading your investments across different sub-sectors like AI, biotech, clean energy and blockchain can help reduce risk while boosting potential returns. To put it simply: Real estate can provide recurring income, through tenant rent or REIT dividends, while also helping to hedge against inflation. Emerging tech, on the other hand, may offer a little more sizzle in terms of growth potential, though it tends to be more volatile and may not produce consistent short-term cash flow. As always, your best strategy is to regularly review your portfolio and make sure it aligns with your goals and risk tolerance. Diversification isn't just about owning many different investments — it's about owning the right mix to support your financial future. More From GOBankingRates 4 Things You Should Do When Your Salary Hits $100K If a Financial Advisor Doesn't Ask These 5 Questions in Your Consult, Keep Shopping 5 Steps to Take if You Want To Create Generational Wealth Robert Kiyosaki: 5 Money Habits of People Who Retire Early This article originally appeared on How To Diversify Your Portfolio With Real Estate and Emerging Tech Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15 hours ago
- Business
- Yahoo
JPMorgan Chief Strategist on Tariffs, Investing Abroad and More
David Kelly, Chief Global Strategist for J.P. Morgan Asset Management, joins WSJ's Take On the Week podcast to explain the importance of global investment diversification. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
News.com.au
15 hours ago
- Business
- News.com.au
JPMorgan Chief Strategist on Tariffs, Investing Abroad and More
David Kelly, Chief Global Strategist for J.P. Morgan Asset Management, joins WSJ's Take On the Week podcast to explain the importance of global investment diversification.
Globe and Mail
16 hours ago
- Business
- Globe and Mail
Billionaire Bill Ackman Has 51% of His Hedge Fund's $13.6 Billion Portfolio Invested in Just 3 Stocks
Bill Ackman probably wouldn't mind being mentioned in the same breath as Warren Buffett. In fact, a recent deal between his Pershing Square fund and Howard Hughes Holdings (NYSE: HHH) aims to transform the real estate business into a diversified holding company much like that of Buffett's Berkshire Hathaway. Investors looking to take advantage of Ackman's investment acumen might consider buying a stake in the company. But it will take a long time for the billionaire's vision for Howard Hughes to play out. Investors who want to follow his best ideas right now can follow along with Pershing Square's quarterly filings with the Securities and Exchange Commission (SEC), which disclose all of the hedge fund's $13.6 billion equity holdings, of which more than half is in the following three stocks. 1. Uber Technologies (19% of equity portfolio) Uber Technologies (NYSE: UBER) is a new addition to Pershing Square's portfolio. Ackman and his team invested roughly $2.3 billion in Uber at the start of 2025. Those shares are now worth roughly $2.6 billion, making it the biggest holding in the portfolio. Ackman believes the fears that the rise of autonomous vehicles will push down the value of Uber are misplaced. Uber benefits from a considerable network effect with more than 170 million users connecting with millions of drivers for rides and deliveries. That network is extremely valuable to autonomous vehicle companies, making Uber a natural partner. Partnering with Uber allows self-driving car companies to grow faster and increase the utilization of their vehicles, helping them maximize their revenue. To be sure, autonomous vehicle ubiquity is still a long ways away. In the meantime, Uber continues to produce strong financial results, exhibiting significant operating leverage as it scales. Earnings before interest, taxes, depreciation, and amortization (EBITDA) soared 35% last quarter on the back of a 14% increase in gross bookings. The company forecast similar growth for the second quarter as well. Uber's also showing strong growth in free cash flow, or what's left of cash flow after capital spending. It produced $2.3 billion in free cash flow last quarter, up 66% year over year. At last year's investor day, management said it aims to convert more than 90% of EBITDA into free cash flow over the next three years. Despite the strong growth outlook, Uber's stock still trades at a good value. Even after some price appreciation since Ackman's purchase, Uber trades for an enterprise value -to-EBITDA ratio of about 25. That's a great price for a company that is increasing EBITDA at about 30% per year. 2. Brookfield (17%) Brookfield (NYSE: BN) is a diversified alternative asset management company with investments across real estate, renewable energy, and infrastructure. Pershing Square first established a position in the Canadian company in 2024, and it's consistently added since. It added another 6.1 million shares in the first quarter, pushing its total investment value to about $2.4 billion today. The corporate structure of Brookfield is unique, with several publicly traded spin-offs and subsidiaries. For example, Brookfield Asset Management (NYSE: BAM) is Brookfield's core holding and the main investment arm. It owns 73% of BAM's shares while the rest is publicly traded. Other publicly traded Brookfield assets include Brookfield Infrastructure and Brookfield Renewable, which also trades as a partnership. The structure is designed to give investors flexibility and maximize the value of its assets. On top of its subsidiaries, Brookfield also includes some separate real estate holdings and an annuities business. The investments are performing well. Distributable earnings increased 27% year over year in the first quarter thanks in part to divesting a money-losing road fuels business. Management said it expects to boost cash flow at a 20%-plus annual rate through 2029 at last year's investor meeting, giving it an additional $47 billion to allocate to new investments and return to shareholders. Ackman points out that nearly all of Brookfield's market cap is accounted for by its public equity holdings. That means investors can get access to its annuity business and its private investments for an extremely low price. The shares currently trade for just 13.8 times its trailing distributable earnings. Ackman suggests a multiple of 16 should be the floor for Brookfield's value and management thinks it should be worth about 18 times distributable earnings. As such, it looks like a bargain at its current price. 3. Howard Hughes Holdings (14%) Howard Hughes Holdings is a real estate company specializing in master-planned communities. Ackman invested in the company in 2023, attracted to its high-quality assets amid the nation's housing shortage. As mentioned, Pershing Square recently struck a deal with Howard Hughes to acquire 9 million newly issued shares. That gives it a 47% stake in the business worth about $1.9 billion as of this writing. Howard Hughes' core holdings offer a lot of promise. Management estimates the value of its assets at $5.9 billion, which means the $4 billion stock trades for a discount. It's generating modest net operating income growth, with expectations for it to come in as much as 4% higher in 2025. Long-term, management sees net operating income climbing another 37% from 2024 levels based on existing projects. Management has historically used the free cash flow generated by its real estate business to pay down debt, invest in new projects, and repurchase shares. Ackman plans to use the cash to diversify the business. He said one of his first moves will be to add an insurance business either by building it from the ground up or via acquisition. Insurance will provide funds for investment through float -- premiums collected from policy holders before claims are paid out -- which is basically cheap capital for Ackman to invest. It's the same way Buffett transformed Berkshire Hathaway from a textile producer into a diversified holding company. The new structure of the company comes with some drawbacks. Namely, there's the $3.75 million quarterly fee paid to Pershing Square in addition to a 0.375% incentive fee for increasing the value of the business. However, it could provide investors with a way to invest directly in Ackman's best ideas. Considering the stock trades below management's conservative estimate for its net asset value, it may be worth adding for investors hoping Ackman can emulate Buffett's success. Should you invest $1,000 in Brookfield Corporation right now? Before you buy stock in Brookfield Corporation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Brookfield Corporation wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Levy has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, Brookfield, Brookfield Corporation, Howard Hughes, Nike, and Uber Technologies. The Motley Fool recommends Brookfield Infrastructure Partners, Brookfield Renewable, and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.
