In 2025 we might see the best investments returns ever.
Then again, we may have a total shocker – you never can tell, because most things that dictate returns we can’t control, and often the things we can control, we don’t. Oh, but that’s why it’s so much fun!

 

But welcome to ’25. I’m writing this in early January, fresh back from a trip up to northern New Zealand with the family. I managed to forget about work and those endless emails and tasks for a couple of weeks – no regrets. 

 

Balance: This is something that kept bouncing around in my head during my time off. I’ve traditionally employed a concentrated investment style, focusing first on property, then on individual shares, then precious metals, and crypto, but I’ve diversified my life elsewhere, specifically where I spread my attention.
Recently, though, I flipped it and reversed it. Why?

 

Different life’s stages demand different approaches. Whether you’re single, pre-kids, post-kids, or enjoying retirement, there are times to concentrate, and times to diversify.
Take this client I once had; he loaded up on Apple shares back before 2015 when they were under $30. I don’t know if he’s still holding, but at $243 a share, his concentrated bet really paid off. 

 

When you’re trading your time for money, a concentrated investment strategy is sound. You’re not dependent on being fed by your investments while you’re building them up – you’re dependent on your ability to earn. But come retirement, diversification helps manage the risk of losing what you’ve already built. Concentration can lead to big wins or big losses – But the model’s simple: Concentrate to start / to build up, then diversify when winding down, and when it’s more important to preserve what you’ve built.

 

Diversification is what most financial advisers hammer home, though, and for good reason. You might not in fact, be that good at picking the next big thing or hit the jackpot. For most people, most of the time, diversification is the safer route. It’s just a shame that in the pursuit of safety, we often lose the chance of a better return along the way. But balance – Here’s where it’s not as simple as choosing the concentrated or diversified pathway. Balance is more nuanced and applies at the bigger picture. In your relationships, your investments, your health, your mental state, your job – there are seasons where you push some things aside to chase an opportunity, and seasons where you shouldn’t.
The key difference between diversification and balance is that balance is something you should aim for throughout your life, while diversification is more of a seasonal tactic.
Failing to keep balance can be more detrimental than not diversifying your portfolio.

 

I had another client who threw a bundle of cash at some high-intensity coaching with Tony Robbins. It transformed his life – he pushed himself, hit his career goals, shed 25 kilos, and ran a marathon. But while he was winning in his career and health, his marriage fell apart, and he missed out on his kids’ lives. In the end, he learned balance-lesson, the hard way.

 

Ambition can propel you forward when it’s structured, but you’ve got to count the costs. Sometimes, you need to balance your personal growth with what’s truly important.

 

Why this rant on balance? I’ve said it before, and I’ll say it again – the next five years could see massive opportunities or losses. Technological and societal shifts could make you rich or leave you broke. Keeping your balance will be tougher than ever, especially as change accelerates and fear creeps in. New markets could pop up in months, global politics might redraw the map, and technology, both human and AI, will change how we live.

 

Let’s take a little detour here. Over my summer, I did a lot more reading than usual, and I stumbled upon a quote by Edward O. Wilson, the biologist famous for studying, of all things, ants. Here’s what he said:

 

“The real problem of humanity is the following: We have Paleolithic emotions, medieval institutions, and god-like technology. And it is terrifically dangerous, until we answer the huge questions of philosophy that the philosophers abandoned a couple of generations ago – where do we come from? Who are we? Where are we going?“

 

Let’s break this down:

 

  1. Paleolithic Emotions: These are our instincts, shaped for survival back in the caveman days. We’re heading into the future with a mindset from the past – what could possibly go wrong?
  2. Medieval Institutions: Wilson talks about governments, religious institutions, and social norms. These sometimes still operation in ways from a bygone era, already ill-suited for today, and most certainly tomorrow’s challenges.
  3. God-like Technology: From the horse-drawn carriage to quantum computing in just a couple of centuries, we’ve got powers that seem god-like, to create or destroy.

 

So here we are, with tech that could change everything or end it, driven by emotions and institutions not built for this era. Wilson calls for us to revisit those big questions – our origins, our identity, and our destiny.

 

Setting and achieving New Year’s goals is great, but if you’re sacrificing the really important stuff in the process, what are you really achieving? If your life’s all about growing your bank balance, chasing that high six-figure income, or just looking and feeling good, remember it all costs your most precious resource – time.

 

What’s the point of amassing wealth if it’s at the expense of your soul? 
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