“To avoid wipeout risk, and become one of those people who gets more affluent through each ebb and flow of the economy, you have to effectively combine three things that have a particular purpose. You diversify, and this lowers the risk of one bad decision affecting your cash flow. You don’t touch the principal, so that you’re not self-destructing by depleting your assets. And lastly, you own high-quality assets so that the probability of failure is minimal. Quality. Diversification. Principal Preservation. Combining those three things is the secret—there you have it.”
Tim McAleenan Jr.