It’s hard enough joining the 1% that control all the wealth, but what about the 1% of that 1%? What do they invest in? Here we’ll take a look at how the extremely wealthy create even more for themselves.
They Buy Stock, And Lots Of It
The ultra-wealthy invest in stocks, and buy them in large quantities, often becoming a major shareholder. This entitles them to a more influential vote during shareholder meetings and if they buy enough they are the majority shareholder, essentially owning the company and directing its vision.
Wondering how to get started in stock investing? This Penny Stocks 101 Guide can get you up to speed on how to invest in penny stocks. It might not make you ultra wealthy, but it’s a great place to get the process started.
They Buy Businesses
Sometimes the super-rich aren’t satisfied with just owning part of a company, so they’ll buy the whole thing outright. After all, they didn’t get rich by accident and they generally know a thing or two about what it takes to run a business. If they see a business they think they can run better they buy it and take over operations.
Examples include Mark Zuckerberg buying WhatsApp and Instagram, or Google buying YouTube and Nest. These purchases were essentially investments that helped propel the core company forward and help their overall profitability.
Some of the richest people in the world act as angel investors, constantly looking for The Next Big Thing and trying to get in on the ground floor. This helps keep their passion ignited as they take a vested interest in a new company and often own so much of it that it’s essentially theirs.
They Play It Safe
There’s risk and then there’s calculated risk, and the wealthy make well-calculated risks all the time. But they also play it safe, making safe and sound investments so they’re sure to keep their base of funds growing while at the same time being more adventurous with a smaller portion of their money.
They Buy Real Estate
We’re not talking about flipping single-family homes here, the uber-rich play at a much higher level. And it’s not just buildings they buy, but land as well. Ted Turner used to be the largest individual land owner in the US, and several other multi-billionaires have very big land holdings.
How to Emulate Them for Success
While it may not be possible for most people to become ultra-wealthy, it is more that possible to copy what they do and experience a fraction of their success. After all, you don’t need billlions to have a great life, filled with everything you want.
The trick is to be diligent, change some bad habits and replace them with good ones. Start investing on a small scale the way the super rich do on a grand scale and you’ll see a steady rise in your own personal wealth.