Re: Investments of the rich

>But it's fair to say they start with the same
>things we have: stocks, bonds, and cash. But if you're truly well heeled
>you're also probably invested in some hedge funds, some private equity and
>perhaps some illiquid income producing assets like commercial real estate.

I don't know if I agree with that. Of the few really wealthy clients
that I have worked with, they do NOT tend to invest much in the market.
Instead, they invest in revenue streams. For example, one client
invests in uranium mines and oil/gas leases, another one invests in
tree/timber farms in Canada and in resort community developments in
developing countries, another one invests in parking lots in downtown
locations and wharfs/docks. In each of those cases, the client had
very little liquid cash flow and almost no traditional investment
assets (so little that most financial planners wouldn't talk to them).


Gary Brolis

Re: Investments of the rich

> Of the few really wealthy clients that I have worked with, they do NOT
> tend to invest much in the market. Instead, they invest in revenue streams.

Yield is always a nice thing.

> One clientinvests in uranium mines and oil/gas leases, another one invests in
> tree/timber farms in Canada and in resort community developments in
> developing countries, another one invests in parking lots in downtown
> locations and wharfs/docks. In each of those cases, the client had
> very little liquid cash flow and almost no traditional investment
> assets (so little that most financial planners wouldn't talk to them).

At the risk of splitting hairs, I contend a person who has nearly all of
his net worth committed to a single type of asset is more of a
"businessman" or an "entrepreneur" than an "investor." These individuals
typically manage or oversee the income-producing asset full time. Granted,
some of these people are very wealthy. But all their effort and all their
money is tied up in their business. I intrepeted the original poster's
query to be what those businessmen do with their millions once they
achieve a high net worth. But of course you know what happens when you
ASSuME. ;-)