April 26, 2024

Where and how do the rich invest?

The outline of the article:

  • The property
  • Securities
  • Art objects
  • Collection wines
  • Personal pensionssavings and life insurance
  • What do mature investors and youth invest in?
  • What are the rules that govern the rich when investing?
  • The concept of wealth is relative, but at leastat least rich people do not think how to pay bills and feed their families. At least for the sake of this it is worth thinking about building up your material and monetary potential in an accessible legal way. The path to personal prosperity can be an exciting and rewarding undertaking for you. Therefore, right now, let's find out where smart people invest, and use their methods.

    Contrary to the stereotype, rich people do not tremble overtheir savings and do not squander them thoughtlessly. Such extremes are more typical of people who are poor or who suddenly become rich. The rich treat money calmly and wisely invest it in various assets that can increase capital.

    And there is no need to make excuses that they have somethinginvest, and they get rich. In fact, many of them started from scratch or even from minus, but were able to make their way to their Olympus thanks to discipline, effort and the presence of a system.

    The property

    The most typical way to invest money in the whole world.Renting out real estate has always been and remains a profitable business, even with certain financial investments in its maintenance. And it doesn’t matter whether it concerns newly built housing or secondary housing, industrial premises or retail premises.

    It is also beneficial to resell. Moreover, you can make a small amount at the stage of laying the foundation, and as the building is built, the cost of your share grows significantly, and you can resell it.

    Also developing is such a direction as the purchase of old buildings, the historical value of which only grows over the years, which means that their value also.

    Securities

    This is the stock market and all its tricks.To make a profit from operations on the stock exchange, you need to deeply understand the topic, otherwise your capital will melt like last year’s snow. The rich have the opportunity to invest money in stocks, bonds and other securities not for 1-2 thousand dollars, but for very substantial amounts, from which the profit will be tangible.

    But even with experienced financial advisorsyou still need to have a flair and be able to navigate the market, because you and not your advisers are responsible for your decisions and the state of capital.

    Production

    Reputable investors give up sooner or laterfrom buying and selling, which is where they usually start their careers, and prefer to invest in production. Moreover, they try to invest in industries that bring stable profits even in times of financial turmoil and defaults - this is primarily the food industry, automotive industry and pharmaceuticals. But not only them.

    Art objects

    Sculptures and paintings may either already possesshigh value, or acquire it over time. Therefore, their value will always grow. And if your collection is solid, then it makes sense to rent it to a gallery and get passive income from it.

    Collection wines

    A relatively new type of investment, but already now the profit from resale reaches 11% - not every asset can bring such a return.

    Personal retirement savings and life insurance

    Middle-aged people invest here.in abundance. Their goal is not so much to increase as to save capital, so as not to eke out a miserable existence in the framework of a limited allowance in retirement age.

    What do mature investors and youth invest in

    Most often middle-aged people invest 45–50 years old in expensive real estate and carefully monitor the safety of their investments, as they operate exclusively with their own funds.

    Young people aged 20-25 tend to invest ininstruments with a high level of risk, and they are even ready to use borrowed funds for this. Startups and the stock market are often chosen. We are ready to invest in our own education and the development of our business.

    Sophisticated investors of any age prefer balanced portfolios of stocks and bonds.

    What rules governing the wealthy when investing

  • Invest only in those tools that are thoroughly versed. Because any movement of money must be able to control.
  • Lay eggs in different baskets so that sudden losses in one are blocked by profit from others.
  • Do not buy elite things for the sake of status and generally try to pay for all real value without overpayments.
  • Listen to advice only from people who themselves have achieved tangible results in investments. The tips of the rest are worthless.
  • To manage millions, you must be able to keep a cool head and keep your emotions in check. If you are torn and tossed from losing a couple of hundred dollars in a deal, then it’s clearly too early for you to dream of millions.
  • Always look for new ideas and objects for attachments. Ideas are in the air, it is worth taking a closer look, listen and recognize. Even in areas where it seems that nothing new can be invented.
  • Change your attitude towards money and make it work for you.

    Moreover, many tools are quite accessibleand the barrier to entry is relatively low. The main thing is to learn how to use it. You can start with free lessons from Alexander Gerchik, who was also helped by these very rules at one time.