#1: Re: Investments of the rich
Posted on 2006-03-06 18:57:58 by Mechanics of Money Financial BBS
>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
<a href="http://www.MechanicsofMoney.com" target="_blank">http://www.MechanicsofMoney.com</a>
<a href="http://www.MechanicsofMoney.com/blog.php" target="_blank">http://www.MechanicsofMoney.com/blog.php</a>
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#2: Re: Investments of the rich
Posted on 2006-03-12 12:21:51 by pmb
> 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. ;-)
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