In that situation, I agree that he need to diversify his assets because he has already a profitable business and too much money. He should invest in other asset after he own his first real estate, he has nothing to worry since his business can generate money.
When we're still nothing, invest in one thing that you really sure can become big. But, after you have a lot of money, diversification is better.
- insure your assets and businesses. Insurance can help reduce the effect of a loss.
AAre you sure the insurance company will cover/refund the assets and businesses if it goes wrong? have you ever experience that?