Portfolio Architecture - Constructing a Well-Rounded Portfolio

[William Duncan]

The coolest thing about the BP community is all the diversity. Diversity in people, markets, asset classes, investing strategies, everything! We always hear that a diverse investment portfolio is the best way to hedge against uncertainty, whether that be in the stock market, real estate market, or any other macro asset class. We don't get a lot of information on the psychology or strategies people are using to develop their portfolios, aka "Portfolio Architecture."

What I'd like to discuss in this forum is the following, for those who are willing to share:

-What are the short and long term goals for your portfolio? Why did you set the goals this way?

-How do you structure your portfolio to hedge against uncertainty? What are your reasonings?

-What do you consider a "diverse" portfolio and how do you structure your KPIs and metrics?

-Are Real Estate asset classes similar to securities, where there are asset types which are cyclical and counter cyclical? If so, which are they and why do they act that way? 

-What is your mindset when diversifying your portfolio? What are your risk tolerances and why? 

-When should one be looking to specialize vs. diversify? Are there ways to diversify within a specific asset class and investment strategy? 

-How do the different markets come into play when creating a diverse portfolio? Are you able to create a diverse portfolio in a single market? 

-Does your underwriting process change as you diversify? Why or why not? 

Thanks in advance! I hope to shed some light on this topic and get some understanding from some of the experts here!