Do you know what percentage of their portfolios billionaires put in the stock market? Our research shows that the ultra-wealthy, billionaires included, typically have only 10% to 15% of their total assets in publicly traded stocks and bonds.
Why? In one word: volatility. Avoid it every chance you get. Invest in private equity, because it outperforms the stock market over time. The lack of volatility is the first reason. The second is that by the time companies go public, the money’s already been made.
Key points
- Billionaires typically hold only 10% to 15% of their assets in public stocks and bonds.
- Avoiding volatility is the main reason.
- Private equity tends to outperform, and much of the gain happens before the IPO.
Accredited investors: learn about current opportunities at tickertapeinvestments.com.
