How I Diversified Beyond Tech Stocks

When I joined Meta as a VP in 2019, like many tech executives, the majority of my wealth was tied up in company stock and other tech investments. While this served me well during the tech boom, I became increasingly concerned about concentration risk as my portfolio grew.

The Wake-Up Call

The market volatility of 2022 was my wake-up call. Watching my net worth fluctuate wildly with tech stock movements made me realize I needed diversification beyond traditional stocks and bonds. I wanted exposure to real assets, particularly commercial real estate, but the barriers seemed insurmountable.

Traditional real estate investment required millions in capital, extensive market knowledge, and significant time commitment for due diligence. As a busy executive, I simply didn't have the bandwidth to become a real estate expert overnight.

Discovering Fractional

A colleague at Goldman Sachs mentioned Fractional during a dinner conversation about alternative investments. Initially, I was skeptical. The fractional ownership space was relatively new, and I'd heard mixed reviews about other platforms.

What impressed me about Fractional was their institutional-grade approach. The due diligence reports were more comprehensive than anything I'd seen in traditional investments. Each property came with detailed financial models, market analysis, and professional property management agreements.

My First Investment

My first investment was a $250,000 fractional stake in a Class A office building in Manhattan's Financial District. The building was 95% leased to investment-grade tenants with an average lease term of 8 years.

The investment process was surprisingly smooth. Fractional's team walked me through every aspect of the deal, from the property's cash flow projections to the exit strategy. Within 30 days, I owned a piece of prime Manhattan real estate.

Building a Portfolio

Over the next 18 months, I systematically built a diversified real estate portfolio through Fractional. My investments now include:

• Manhattan office buildings (40% of real estate allocation)
• West Coast industrial properties (25%)
• Southeast multifamily developments (20%)
• Retail properties in high-growth markets (15%)

The Results

As of today, my real estate investments through Fractional represent 30% of my total portfolio, significantly reducing my tech concentration risk. The quarterly distributions have been consistent, and several properties have appreciated beyond initial projections.

More importantly, I sleep better at night knowing my wealth isn't entirely dependent on tech stock performance. The real estate investments provide steady cash flow and serve as an inflation hedge.

Lessons Learned

Three key lessons from my experience:

1. Due diligence matters: Fractional's institutional-grade analysis gave me confidence to invest in markets I didn't know intimately.
2. Diversification is powerful: Real estate performance has been largely uncorrelated with my tech holdings, providing true portfolio diversification.
3. Professional management is crucial: Having experienced property managers handle day-to-day operations allows me to remain a passive investor while still benefiting from real estate ownership.

Looking Forward

I'm now exploring Fractional's private equity and alternative asset offerings. The platform has proven itself as a reliable way to access institutional-quality investments that were previously out of reach for individual investors.

For other tech executives looking to diversify, I'd recommend starting small and gradually building exposure to alternative assets. The key is finding a platform you trust with the expertise to guide you through unfamiliar investment territories.