Here's How The Rich Invest Their Money

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really? why the hell you are talking about things you do not understand? And so many IDIOTs are listening to your uncontrollable bulshit… Dear God!

I’ve worked in equity, hedge and private equity funds for 30 years. Most of the time in PE we don’t even best inflation.

They know nothing that other people don't. This is a pointless video.

The goal of wealthy individuals is wealth preservation not wealth building. If you're an average person and you copy the "wealthy" portfolio all you're going to do is get average growth over time. For most people an ETF tracking the S&P 500 does the trick and you'll end up, after 30 years, with some good amount of money to retire on. But if your really want to build wealth you need to take more risks at the beginning. If you're just starting out now is the time to take risks because you have very little to lose.

Modern portfolio theory has been proven by Nobel Prize winners as not being the most optimal way to grow wealth. The reason fund managers implement it is because they have pressure to deliver average results on a monthly basis. They have to perform as good as the S&P 500 or their clients pull their money and go somewhere else. So all funds end up performing right around the S&P 500 level. If you want to build real wealth you need to do something different.

Average investor: Oh, I've managed to have a huge sum in this quarter to invest this time. Let's look for a good investment for my 35 €.
Rich investor: Oh, I've only a small sum to invest this week. Let's look for a variety of good investments to spread my 100k €.
James Shack: (Makes a thumbnail that insults average investors.)

This is bad advice. It’s rare anyone get’s rich through diversification. That is for maintaining wealth. They’re using this strategy to keep their money.

James: "Stocks can be extremely volatile"
Me: "James is obviously not in crypto yet" 😉

As an aside… in todays world where legacy brand western countries are over extended with their debt, swinging toward the extreme left politically, and becoming more and more authoritarian, an investor has to asses the sovereign risk of their government deciding to appropriate assets directly or indirectly through increased taxes and currency debasement… at least a portion of a portfolio needs to be in un-debaseable, portable, self custody assets.. something you can keep in a safe spot, and pick up and carry away with you if the sovereign risk eventuates and you need to flee with only what you can carry, and that your government cannot inflate away while it is sitting there waiting, ready to flee.

The rich are investing to preserve their wealth. You should be investing to get rich. Following a rich person's portfolio is a bad idea, unless you know what their goals are. That would be like following your grandparent's workout regime.

Right now as USD is facing 15% annual purchasing power reduction, what could you buy to make your bank account number get smaller?

It’s amazing how applicable the dead internet theory is in the comments section of these vids. Don’t get scammed yall!

Wealthy people's real estate holdings have always been squirreled away into legacy 'trusts' or other similar tax advantaged accounts. Trust me on this. Wealthy peoples real estate holdings are their heir to apparent – they know you can't live in your equities. JPM has no idea what their real estate holdings really are.

The word investment is spelled wrong 6:48

Best advise … average person has no time for any of the exotics stick to index funds…

2:29 The pie chart for Average Investor is wrong because it does not include their home equity. Add that and their pie chart looks substantially more like the Wealthy Investor pie chart.

Damn I thought you were Burt Reynolds for a minute.

Any regular person who owns a rental property would then have red covering the majority of the pie.

I started investing because I liked the extra money from stock dividends. The key, in my opinion, is to make enough money through both investing and dividends, so you can live off the dividends without selling anything. This way, you might pass on this financial advantage to your kids. I've put more than 60K into dividend stocks over the years, and I'm still buying more, planning to keep going until prices drop more.

I'll tell you why—because they have plenty of money, and the compounding is going to be greater than that of an average investor.

If you had $250k, which investments would you go for in terms of maximizing returns and mitigating risks? I'm semi-retired and only work 7.5 hours weekly. Looking for opportunities in the market that can fetch me millions, then I can retire.

Glad to hear you came to the right conclusion at the end of the video there. Was a bit worried at first.

The weathly are focused on preservation, the rest of us have to focus on GROWTH, because we dont have the wealth to satisfy our dreams. Its a fools errand to invest like the wealthy.

This topic is right up Caren Janelle Jacobs’ alley. I learned a lot from her articles and videos—she’s easy to find if you search her name.

The first time I read Caren Janelle Jacobs’ blog, I felt like someone finally understood my struggles with money. Give her a search if you relate.

Really sound analysis and advice. Thanks for sharing 👍🏿

I have recently turned 56 and have realized that I have amassed over $200,000 in savings. Despite this, I have yet to make significant investments and am starting to feel anxious about my retirement. Could you offer guidance on advisable strategies to enact at this point? Any advice on prudent steps to take at this stage would be appreciated.

Blaaaa blaaaa blaaaa

This is 100% Eddie Hearn's, kid

These stocks are funneled. Say the powers that be know a boom or bust they will give it to their rich friends. The rest ( computer says no).

F#&K it. I've been considering a gorillion options for so long I don't even care anymore.
25% S&P 500, 25% VTIAX and 50% bonds.
I'm not adjusting for age either, I'm just sticking with that forever lol. Wish me luck.

Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action. Investing is 5% intellect and 95% temperament.

Thanks James for the nice video. I want to be in 100% equity for next 10 years. Is Vanguard VHVG FTSE Developed Index (90%) + VFEG FTSE Emerging Index (10%) a good option? OCF of 0.12 % & 0.22% respectively. Thanks

I believe every Investor should start with ETFs for a solid foundation, then diversify across asset classes and maintain disciplined, regular investing to minimize risks and maximize growth.

You cannot copy the rich, they got money to play with, you don’t.

I would be very careful saying "most wealthy people got their money by starting their own businesses". I'd guess a very large portion inherited the assets, including businesses

Hey James. Do you have contact details of your company ?

Dirty secret of PE – every fund is upper quartile…………….🤔

Cowards drive this to abyss

My spouse lost a great deal of money $180k to one of these platforms and we was going bankrupt but for the timely intervention of Jake Blake Hunt expert team who helped to retrieve 69% of the lost funds. Until now I still have my reservations with putting money into crypto.

what about public PE companies like KKR, PGHN

I've just begun learning about value investing, and I've found that many good stocks are undervalued despite their intrinsic value. If you had $100,000 to create a strong investment portfolio, which stocks would you choose for better returns?

Rich people have access to wealth management people like you, they have a large enough size that it’s worth while for you to fleece them on fees. If you use your brain most people got rich through starting businesses or real estate, not because it is the optimal way to invest

Low net worth individuals invest in stocks and bonds.
High net worth individuals cannot exclusively put all their wealth in one source, so they not only diversify stocks, but investment types.