I often review client portfolios and think about the role diversification plays in each. Although technical, the basics of portfolio diversification are quite simple: include a set of investments that provide return experiences which are different from each other. Over time, each investment can contribute in its own unique way. When done properly, the portfolio could have a less volatile experience over time, while providing a reasonable rate or return. Of course, this is oversimplified, but it’s the basic concept.
A healthy approach to networking holds the same characteristics: incorporate people (or groups of people) into your community with different backgrounds, and who likely don’t know each other. Do so with the intent that they will contribute in different ways to your existing community. If done proactively, your network will expand to a robust and productive community before you know it. Given the richness of your new community, when your time of need presents itself, you will be able to identify someone who is likely willing to help.
