Money managers, financial planners, stock brokers, all seem to repeat the same investment mantra: diversify. Countless television commercials tout the benefits of owning gold and silver to protect against inflation (what’s that, btw) and weakeningdiversification is overrated dollar as a part of a savvy investor’s portfolio. Diversify, spread your risk, and don’t put all your eggs in one basket.

There’s a hundred clichés that could describe that strategy. But let’s take a slightly different tack. One that EquityBuild CEO Jerry Cohen follows. First, though, let’s examine a basic diversification strategy.

Of course, the theory, and practice for most, is to spread risk across different investment vehicles. That way, if one or two fail there are others to take up the slack. For example, someone invests 50 percent of their assets in a well-regarded mutual fund that only invests in blue chip companies. 25 percent is allocated toward high-growth, high-risk stocks while the remaining 25 percent is in money market funds. At any one time, what can you expect?

Generally speaking, if the blue chips are doing well, then the higher risk fund not so much. Conversely, maybe the high risk tech sector is experiencing quite a quarterly boom but the stable blue chips are barely breaking even. Of course, money market funds aren’t doing very much at all. But hey, it’s diversified, right?

Cohen says, “I wholeheartedly agree with Warren Buffet’s investing strategy. He said that ‘Wide diversification is only required when investors do not understand what they are doing.’ That’s not what we do. We know our strategy and know it well. Our philosophy is that if something is successful, you do more of it, not less.”

And the track record proves it. Buying distressed real estate and selling for a profit results in regular double digit returns with returns hitting 12 to 20 percent. Compare those results with a mutual fund, individual stock or a bond in today’s market and there’s simply no comparison. EquityBuild has 500 successful transactions with those verified results. Do you think Mr. Cohen has very much money in a money market fund or a certificate of deposit? We didn’t think so.