Diversify Your Portfolio Like the Ultra-Wealthy

There’s a wise saying “You can either work harder for your money, or you can invest smarter and let your money work harder for you… the choice is yours.”

This email is designed to provide you with a thought-provoking look at portfolio diversification, along with essential data and facts to help you decide which asset classes and investment opportunities you should have in your portfolio.   

We believe the eye-opening charts and graphs will have a profound impact on how you look at traditional investing.

How The Middle Class, Upper Class and Ultra-Rich Invest Differently

It’s no secret the middle class, upper class, and ultra rich invest very differently. The wealthy love investing in businesses and real estate to grow their fortunes.

And with stocks at extremely questionable valuations, savvy investors at all levels are diversifying more of their wealth into hard assets. The cost not to do so could be extremely painful, as anyone who suffered the dotcom crash in 2000 or the financial meltdown in 2008 will tell you.

Let’s get to the data! Our first graph is from American economist Edcward N. Wolff. It shows how each class allocates their wealth, with exact percentages showing where they put their money.

The ultra rich allocate 49% of their wealth towards business equity and real estate investments in particular, while the middle income class allocates only 7.9%. 

TIGER 21 Asset Allocation

Now let’s look at a recent chart from TIGER 21, an exclusive, unparalleled global community of ultra-high-net-worth entrepreneurs, investors, executives, and family offices, each with a liquid net worth of $20 million or more. Every quarter they share their portfolio data in an Asset Allocation Report

The chart shows how TIGER 21 members have allocated their investments across asset classes.

The actual percentages of each asset class is important, but it’s also important to look at the changes from the previous quarter. 

The report for the last quarter of 2023 shows a strategic rebalancing with an increase in Real Estate and Fixed Income and a decrease in Private Equity, Public Equities, and Cash. All other asset classes remained unchanged.

Fixed Income allocations rose by 1% to 9%, indicating a shift towards investment in stable returns. This may not seem like a big change but a 1% change in a single quarter is significant!

Bottom Line

Take a minute to look at your own portfolio… how do your allocations compare to the ultra-wealthy?  Do you need more diversification? Is your money working hard enough for you?   

In our next email we’ll look at investment classes from a different aspect – annualized total return vs annualized risk.  We want to invest in assets that have higher returns, but not if the risk outweighs the higher returns. And since real estate is an important aspect of portfolio allocation, we’ll look at real estate capital stack risks and rewards. 

The charts we will share are very insightful so keep an eye out for our emails.

What’s YOUR Action Plan?

Do you have a desire to create monthly cash flow by leveraging the resources you already have and not having to be involved in the daily grind of your money making more money?

Do you want a safe dependable way to invest and plan for your future and…  enjoy the present just a little bit more, then I invite you to schedule a call with myself and my expert team?

This is a personalized investment strategy call designed to help you answer these questions 

Where are you now?

Where do you want to go?

And how are you going to get there?

Whether you work with us or not you will have the roadmap to reach your financial goals. If you would like to join our massive group of successful investors, benefit from our long track record, and travel the huge amazing road ahead, we would be honored to work with you. 

You can book your personalized portfolio strategy call here.

Big Things Ahead,
Nic DeAngelo
President of Saint