Gil Baumgarten – Concentrate to Get Wealth but Diversify to Keep It

BIO: Gil Baumgarten is a 36-year veteran of the investment industry. In 2010, Gil made a break from the brokerage world to start Segment, a fully fiduciary firm where the interests of the client and the firm could align. STORY: Gil invested heavily in UBS shares, and when the 2008 financial crisis hit, the stock lost its value and knocked about 80% of the market value of his stocks. LEARNING: Concentration is the key to getting wealthy. Diversification is the key to keeping your wealth. Don’t be too diversified or overly concentrated.   “Wealth is the sum total of all the money you’ve never spent.”Gil Baumgarten  Guest profilehttps://www.linkedin.com/in/gil-baumgarten/ (Gil Baumgarten) is a 36-year veteran of the investment industry. In 2010, Gil made a break from the brokerage world to start https://segmentwm.com/ (Segment), a fully fiduciary firm where the interests of the client and the firm could align. He has since attracted a billion dollars in supervised assets. He is a multi-year recipient of Barron’s Top 1,200 Financial Advisors in America distinction, wherein Gil was ranked in the Top 50 Financial Advisors in Texas. Worst investment everGil decided to accumulate some stock options and use that to retire in his 60s. His plan was to have a couple of million dollars worth of stock and stock options. Gil invested heavily in the UBS stock and was feeling confident about it. Come around 2008/09, not only did the stock market fall apart, but his UBS shares dropped and knocked about 80% of the market value of his stock. He lost well into six figures in a relatively short time. The vast majority of his loss was occurring in his UBS shares. Lessons learnedDon’t get carried away. Be mindful of the risks that you cannot control. Concentration is the key to getting wealthy. Diversification is the key to keeping your wealth. Stop speculating, instead buy an index fund and let it sit if you’re interested in compounding wealth. Andrew’s takeawaysPeople get wealthy by first concentrating their energ