‘Shark Tank’ star Barbara Corcoran: Don’t diversify your financial investments

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Barbara Corcoran reacts to a 24-year-old who owns 3 rental properties

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Barbara Corcoran does not think in letting money sit idly.

The business owner and long time financier on ABC’s “Shark Tank” states “money is meant to be spent”– however just in a handful of locations.

“One piece of advice people hear all the time, and I just don’t believe it, is: ‘Diversify, don’t put all your eggs in one basket,'” Corcoran, 74, informs CNBC MakeIt “I put all my money in the real estate basket, my brokerage firm, and everything in there went to buying properties.”

“I spent every dollar I ever made and threw it back into the business,” she includes.

Corcoran states she’s developed “a lot of wealth” by investing thoroughly and enjoying the marketplace, however not stressing over purchasing throughout various markets. She adheres to purchasing and offering property– a market she understands well, after developing property company The Corcoran Group in 1973 and offering it for $66 million in 2001– rather of venturing into locations like tech or healthcare stocks.

In a method, her suggestions echoes Berkshire Hathaway CEO and chairman Warren Buffett’s popular financial investment method, which is to just buy business that you think in. Currently, Berkshire Hathaway’s equity portfolio concentrates on just 5 stocks, according to its yearly report: Apple, Bank of America, Chevron, Coca-Cola and American Express.

Berkshire Hathaway’s years of investing success are mainly accountable for Buffett’s present net worth– $104 billion, according to Forbes.

Tesla, SpaceX and Twitter CEO Elon Musk, presently the world’s second-richest individual, uses a comparable technique. “Buy stock in a number of business that make items [and] services that you think in,” Musk, whose net worth is $1914 billion, tweeted in 2015. “Only offer if you believe their items [and] services are trending even worse.”

The distinction: While Buffett and Musk concentrate on stocks that can cover several markets, Corcoran concentrates on a narrow set of physical items, like homes and apartment. She particularly suggests the property technique for youths wanting to invest, even if methods asking their households for monetary aid in the beginning.

“You need to get in the video game due to the fact that when you desire your one-bedroom, you require a chip to trade up with [for] when you desire a two-bedroom apartment or condo in the suburban areas,” Corcoran informed the “Chicks in the Office” podcast inMarch “Forget about the timing [of the market] … [Get in] today.”

Disclosure: CNBC owns the special off-network cable television rights to “Shark Tank.”

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