Hey everybody this is Phil Town this is Phil Town this is Danielle Town and

we're here for the Invested Podcast where we're talking about how to figure out how to invest so that it doesn't take a ton of time.

You get really good results like Warren Buffett and Charlie Munger.

Yes.

And your risk is lower than the risk you're taking in your mutual funds.

Oh, that sounds good.

Yeah.

Thought I'd throw that part in there. That's going to raise

the hackles of everyone who believes in modern portfolio theory like crazy, because it's just

axiomatic that when you don't over-diversify

across lots of exchange-traded funds and mutual funds and put your money

everywhere that you're taking more risk.

That's axiomatic.

When you only invest in a few things.

When you don't over diversify it.

So when you under diversify, when you appropriately diversify, which is a little

bit of a joke. I mean Bruce Berkowitz appropriately diversified into City, Bank of America, and AIG with $18 billion.

They're all in the same industry, more or less.

So that was, I'm being a little facetious in that diversification is appropriate to the degree that you don't know what you're doing.

So the more you know about what you're doing, the less you have to diversify.

For example, you don't have to diversify a lot if you buy a single family home in order to rent it.

In a neighborhood that you feel very confident

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