How to invest like the 1%?

How to invest like the 1%?

The top 1% of the world’s population is the one that owns 45% of the world’s total wealth. If you want to be among them, it is possible! All it takes is a deep understanding of the investment world, portfolio diversification and protecting the investment when the market dips.

All these investors invest the same way as any regular investor. What sets them apart is the alternative investments they hold in investment arenas like fine art, real estate, private equity and more. The diversified portfolios enable investors to lock in more significant profits than any ordinary investor.

In our article, we will talk about everything you need to know to invest, like the crème de la crème!

How to shift from the 99%er list to the top 1% investor game?

Diversify your investments (and problems)

Invest like the 1% diversify your portfolio
Most investors fail to diversify their portfolios in ways that makes their profit stand out. For regular investors, approximately 60% of the amount is invested in stocks, which are considered a high-risk investment. The other 40% is invested in bonds that are typically low risk and low return. This 60-40 rule is applied in order to offset any losses from stocks by the gains in bonds. However, to invest like the top 1%, you also need to diversify your portfolio beyond stocks and bonds. Investing in real estate, precious metals, collectable artwork, hedge funds, venture capital, private equity and others will help you enjoy magnificent returns in the long term.

Solid allocation

Diversification needs to be backed by allocation. This means how you allocate your cash into different investments is what will decide if you are going to invest like the 1% category or the remaining 99%. Investing anywhere between one fourth to one-fifth of your portfolio in alternate funds is a good beginning.

Like real estate, precious metals and fine artwork’s value does not fluctuate as much as stocks, it helps investors sail through major financial market downturns easily.

Open your doors to real estate

build a property portfolio
Most of the top tier investors have big chunks of their money in real estate. Property is one of the safest yet highest-paying investments which has been in the market for decades now. From our grandparents, parents to now us – property owned by oneself is what makes an individual feel the safest. This is because it holds a good amount of money which can be liquidated for high returns at any time.

It is a slow and stable investment that provides you with real benefits and low risk. The value of land in almost all big economies have increased over time and will continue to increase due to the growing population. To take an example, since the end of 2008, housing prices in the US have increased by almost 35%. This means if you invested $100,000,00 in 2008 in real estate, it would value $135,000,00 today.

Now, you can buy real estate even without the traditional method of actually visiting a property and purchasing it. Here are other ways in which you can invest in real estate –

  • Investing in the Real Estate Investment Trusts is an easy way for investors to invest in real estate through trusts listed in the stock market.
  • You can also invest in a private real estate fund which will involve combining your money with other investors’ money to buy a property. A team will manage the property for future returns.
  • Fintech platforms now offer real estate crowdfunding that allows investors to purchase some part of the property with other investors. This allows them to own a share of the property as per their pocket allowance and enjoy profitability benefits as the property price increases.
  • Real estate ending is another way that allows investors to come together and loan the money to a company or individual to buy the same, take care of it to and enable them to earn profits on the same.

 

Conclusion 

To invest like the 1%, there is a long way to go. Starting small but early will help you reach your destination because there is definitely a possibility. Always remember, big investors like Warren Buffet were not born as big investors; they started as regular people with regular money but invested carefully, rationally, and fiercely. That is what led them to become the biggest of all time, and the legacy continues. To be a part of that group now is the time to begin. Because if you do not start now, you probably never will!

Want to learn more how to invest like the 1%? Request an introduction and we can put you in touch with investment specialists. Click the link below.

 

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