Here's How The Rich Invest Their Money

[@JamesShack]

WARNING! Please please be wary of bots that are trying to impersonate me in the comments. Lately, they have been offering "Coaching courses" and trying to get you onto WhatsApp. This is not me it's a scam. I will never try to contact you; you can only get in touch with me via the link in the description of the videos. My audience skews heavily to older people who are more likely to fall victim to scams. So if you see any comments from bots, please report them. It's really helps to protect others in the community. Thanks in advance!

[@adambritain5774]

There’s a ‘decision’ of the videos is there…? 😂

[@RobCLynch]

@@JamesShack yes I've just received an invite to the coaching course, with a WhatsApp number to add lol. I've reported it.

[@jonasking3670]

Also there are the bots that comment on their own posts under different accounts in order to fool people into looking up some “advisor”. You can tell it’s happening because the responses don’t sound like how someone would respond to someone else.

[@JosephCarlsonShow7]

How to contact you?

[@guyr7351]

@@jonasking3670yes these are so annoying and to most of us obviously so fake. Mr/mrs so and so grew my £10,000 or doubled it in a month blah blah blah. If you click on them and report them they get deleted but I guess the bots just re post.

[@davidreichert9392]

A good rule of thumb is that if your portfolio is too boring to discuss in social situations, you've done it right.

[@JamesShack]

Haha, I like it.

[@jeremyhill3837]

This made me laugh! Reminds me of my mates reactions when I start telling them about market index funds 😂😂😂

[@Roman49837]

I know a very smart and wealthy guy that worked for NASA. One day I asked him about his investing strategy. He told me “just put everything on the S&P500, that’s it”. 😅

[@SD-gw5vm]

​@@Roman49837 I work with a market risk analyst at an oil trading firm and they said the same thing to me

[@garythornbury9793]

YOU JUST DESCRIBED MINE,

[@spivvo]

I am a retired institutional fund manager (36 years in the industry). I’ve seen it all from the inside and agree with 100% of what this gentleman is saying. The money that wealthy people put into alternatives is their “fun money” the equivalent of an ordinary person buying a few lottery tickets. They kid themselves that itis diversifcation but it’s just thinly disguised greed and generally what they gain in return they give away in fees…. And that’s the lucky ones. So good to see such sound advice being given.

[@tamwilfred]

Greed or the feeling of hitting it big. Most of my investments are in index funds but I use a small percentage of my portfolio value and invest in single stocks and alternative investments. I fool myself in thinking maybe I see something people don't see yet. I just want to speculate sometimes. I treat them as a lottery ticket. Sometimes people need some excitement in investing. Nobel Memorial Prize-wining ecnomist Paul Samuelson famously stated that "investing should be dull, it shouldn't be exciting; investing should be more like watching paint dry or grass grow". Maybe I just want to add an expresso in my coffee to get a little excitement but I'm not betting the entire farm on some of my speculative investments.

[@RudiNesta]

Totally agree with this!

[@gingerkilkus]

Sometimes Protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over.

[@CharlesArthur-fq5sx]

Nobody knows anything, you need to create your own process, manage risk and stick to the plan, through thick or thin ,While also continuously learning from mistakes and improving

[@Franklin-gq4si]

Many overlook that banks are return-driven businesses. I don't trust keeping a large sum in a bank. Instead, I invest with guidance, enjoy the benefits, and save for retirement.

[@williamDonaldson432]

After the '08 financial crisis, I've learned not to trust corporations. Since 2020, I've been investing with a financial advisor and have had no major losses, so I'm not going back to relying solely on banks.

[@foreverlaura-fq4eu]

Market behaviour can be complex and unpredictable. Mind if I ask you to recommend this particular coach to whom you have used their services?

[@williamDonaldson432]

The decision on when to pick an Adviser is a very personal one. I take guidance from Rebecca Lynne Buie to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.

[@Greylocks129]

If you don’t understand it don’t invest in it…

[@JamesShack]

Agreed.

[@jollama]

All my investments are based on what influencers say and I’m up 15% overall despite not understanding a single thing they said

[@Aspirational123]

@@jollama precarious

[@jollama]

@@Aspirational123 I’m sure VOO, QQQ, SCHD, VGT, and DGRO are precarious

[@Greylocks129]

@@jollama is it sustainable over 40 years?

[@themiddle4220]

Just one point that needs emphasised. The JP Morgan survey (or similar) of HNWI is a self-selecting group. The richest cohort of individuals (excepting inherited wealth) are typically company owners, rather than those taking income from employment. As such, the stats are always going to show a substantial % of HNWI having their wealth in private stocks, since they are company owners. That’s less of a result of a ‘wealth strategy’ of the HNWI - if you excluded owners of their own companies (as opposed to people with the wealth able to buy into private equity), the mean average holdings would no doubt be rather different.

[@JamesShack]

Other studies I've seen show that wealthy individuals have 70-90% of their net worth tied up in their own business. I picked this study because it's based on Family Offices which should give us a better understanding of what their "investment" portfolios look like. As demonstrated in the video, it's not that dissimilar from US endowment funds.

[@zugzwang2007]

@@JamesShack Yes, the Family Office is typically either managing money that resulted from selling the original business, or assets that have been collected outside it. In neither case is the equity in the business part of the portfolio being analysed.

[@nunyabidness3075]

We have enough to maintain a comfortable lifestyle with a cushion for risk and not working at all. If I had more, I’d likely get more creative with it by investing in small companies and not really worrying about the risk because it’s something I’d want to spend my time doing. I don’t do it now because it’s too much risk. All the HNWI’s I’ve known personally did what they like doing and were good at it. Seriously, they will never really retire because they like what they do. Luckily, I like pickleball and hobby stuff. 🤣😂🤣 I

[@Rmoralesz]

With a good investment plan that ensures a steady income without any doubts, I and my wife are prepared for a well organized retirement. I started investing in stocks 2 years ago and so far, I am making a good yield on my dividend. I've learned that getting a good return is very much attainable only if you know your way around it.

[@Jakebottom]

What’s your secret? How are you making dividends consistently? I've been quite unlucky

[@Rmoralesz]

It's totally far from luck. Jonas Herman, a CFA has consistently outperformed the market ever since I got on his program. He has continued to put my $25k to good use with market driven strategies making me an optimal return of over $231k

[@Fleneroy]

That's your view. In my experience, there is no such formula, it is nearly impossible to achieve success with investing. It’s all just gambling.

[@Heavenontheeearth]

51 here. I hope it's not too late for me to get started. How can I get acquainted with his service?

[@Rmoralesz]

Hermanw jonas that’s his gmail okay

[@paulvilagos7008]

Thx James for saying it outright : "People shouldn't consider their homes an investment" thank you very much.

[@rhysbevan429]

Richman thinking: "Other people's homes are my investment"

[@roryt1985]

In the right circumstances, they absolutely should.

[@sopissedoff]

I've never had anything other than my mortgaged home , in 2014 I bought a well run down small bungalow with a BTL mortgage , I had bother gathering up the deposit of 25% , The bungalow cost 60k it wasn't pretty but that was one of the cheapest homes around, I rented it out to the same lovely couple for that whole 10 years , I never increased the rent for that whole time but I was getting 475 rent and the mortgage was 160 so I had no need to unfortunately the gentleman died this year and his wife has gone into a care home , now Iam 64 and thought if we sell r home which is now worth about 250k and move into the we bungalow clear the BTL mortgage ,I can now retair, I don't have much more than about 150 k between pension ans ISA , but 10 years ago I had almost nothing and just scraped up the deposit for the BTL, Now I still have nothing much but I didn't realise at the time how buying the run down BTL would set me up for retirement ,That was more luck as house prices were still depressed after the housing recession in 2007 , so if U have a decent home and a few pound and about 15:to 20 years from retairment look out for a rundown property or existing BTL at a discount it can set U up going forward

[@nunyabidness3075]

That’s all word play. Anyone who thinks that waste is a good idea should certainly not think about how much they are paying and spending and likely to get when they sell. For everyone else, investing some time making good decisions and protecting the value of their home (if it makes sense to buy one) will get farther ahead. One of the wealthiest people I’ve known always rented. OTOH, I’m one of the wealthiest people in my close circle, and I’ve lived in nice homes which I’ve enjoyed while hardly paying anything for them since I got big checks back each time I sold one. Finally, just in case you are one of these malcontents wanting to change the world by somehow making everyone stop treating their homes as investments, it’s only going to cost you money and make you unhappy. I strongly suggest you deal with the world the way it is. Go figure out what works and do that. The world will not conform to your idea quickly. Even if you are absolutely right, AND you can convince everyone, you will be near retirement before it really changes.

[@davidbrooks8809]

​@@roryt1985..if you are renting it out 😮

[@Mitchell.Holland]

Watching in my 40s... And only just starting I feel so behind!

[@henrymitchell9717]

Gotta start somewhere...

[@barbborstein7640]

Keep going mate I started at 41... was in 7K debt and living in my overdraft. I'm now debt free have a 15K emergency fund. 20K saving pot and just surpassed 150K. Diversification and a clear understanding of your financial goals are key... I am almost 43 now!

[@estevez1942]

The only comparison that matters is the one to yesterday's self. Today you're starting which means you're already better than you were yesterday:)

[@MHousley]

I lost a lot chasing individual stocks and I feel pretty silly for not understanding how investing works. I have a double major in economics but I’ve been trying to make sense of the market. Well done on profits!

[@barbborstein7640]

Keep it simple, buy things you understand, take some risk but don't try to shoot the lights out. I’m invested in ETFs, equity index funds, and individual stocks and use a CFA. On average, she takes 10% of returns, but using *Lina Dineikiene's* system makes it much more hands-off. I conservatively follow her recommendations and market entry and exit points, and tbh this makes it fairly simple for me... I am convinced it's not just hard work but smart work :-)

[@juriteller3688]

No, do NOT copy them, they invest like this because they are already rich. If you want to get rich do NOT copy them.

[@tobiaskallweit3911]

^ this.

[@alansach8437]

Correct! They can afford to take a big hit and ride it out, or "buy the dip", throwing more money in. The average person may not be able to afford that.

[@ronmexico6241]

​@@rniggardsonwere u ever poor? I've been wealthy since 20 years old , self made. You sound like an ass...

[@crimediaries1143]

Great point. Also, the percentages can be misleading. For example, they have roughly $5M in bonds and $10M in equities. Their absolute amounts invested in these asset classes are much greater than the average investor.

[@TheBryanmauro]

My thoughts exactly. When your that wealthy you need to hide your money in tax shelters.

[@SarachiWowa]

I must say you are an inspiration because I started up investing and trading as a scared investor who doesn’t want to lose money, glad to say I’m very profitable now and bought my first house through it

[@MemoryKasu]

I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!

[@Agatha.wayne0]

My portfolio has been in the gutter for the entire year, so I started researching new ways to profit in the market, but everything I tried just seemed to miss the mark. Please let us know the name of your financial advisor.

[@Dave_East]

I'm interested in trying this out. Who is your advisor, and how can I contact this person?

[@Agatha.wayne0]

Stacy Lynn Staples a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

[@GersderaNioer]

She appears to be well-educated and well-read. I ran a Google search on her name and came across her website… thank you for sharing

[@fabianmoss124]

big returns come from investing big. investing big comes from building conviction, conviction comes from understanding, understanding comes from doing your homework and research beyond surface level.

[@RoseGuerra7862]

I want to start a Roth Ira before the end of the year. do you have any stock you would suggest to buy and hold long term?

[@martinheaway]

Having an investment advisor is the best approach to the market right now. I was going solo without much success until my wife introduced me to an advisor. I've achieved over 80% capital growth this year, excluding dividends.

[@JaneClark7861]

I could really use the expertise of this advsors

[@martinheaway]

''Lauren Camille Brown’' a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market

[@JaneClark7861]

I’ve just looked up her full name on my browser and found her webpage, very much appreciate this

[@themachine300]

That last analogy about Federer is a really great point.

[@nathanrathbun2619]

1% of hundreds of millions is still a lot of gold.

[@edwardkenworthy7013]

It's worth remembering that "The Rich" also invested in Theranos.

[@williewonka6694]

Yes, and with Sam Bankster Friedman and Bernie Made-off as well.

[@Elaba_]

Bloody hell.

[@dlc2479]

Right

[@romybrater1353]

I will add that 99.9% of the victims of Maddoff's scam were yltra wealthy. But those also were ultra greedy...sad.

[@rubyus7332]

They’re rich, that’s why they can afford to lose money! 😂

[@tigerrx7]

You’re also looking at data for people who are in wealth preservation, not aggressive wealth creation

[@1292liam]

2.00 what kind of bonds? Bonds are boring and do little, I dont get it

[@Jakeyosaurus]

Great video as always, was wanting to see a video touching on venture capital!

[@JamesShack]

You're very welcome!

[@theemannetje2096]

Keep up the videos jakey!

[@AnOldGuy164]

My wife and I are 75. We have always invested 100% in stocks. The broad market. We set a goal for the annualized return. The broad market gave us that and more. There was and is no need for us to look for other investments.

[@gorkyd7912]

The investment strategies that worked for boomers in the most prosperous decades in world history are unlikely to continue working for their children.

[@rgarri6396]

You have done good as of today, pray you get to keep it! You made it to the top, don’t fall off, it’s a long way down.

[@earlwilliams5473]

If I had 30-40 years to invest I would go with SPLG myself.

[@ronloftis9080]

You did not mention BDC funds as a way to invest in startup companies and private equity. Funds in the USA like ticker symbols MAIN, OBDC, ARCC

[@utuberick1]

Totally agree. The yields on these BDCs are exceptional, some above 10%. Reasonably stable share price too.

[@wulfrunian77]

Always top notch advice James The only finance influencer people should listen to

[@JamesShack]

Thank you for saying so!

[@neilhaighton2098]

I agree 👍

[@HectorWhitney]

The whole point of wealth for me is freedom. My magic number in my mind is 5 million needed at 65 to not worry about anything. Am i better off investing a good portion of my income into stocks or real estate to achieve this goal?

[@JohnSmith060]

Varied sources of income is wise and especially living within your means. My net worth is $2M and I can pay my bills with no stress, but I don't live like I have that. I have no complaints.

[@ClarkeGriffiny7]

Money advice is subjective, what works for you may not work for someone else, but it's always better to plan. I'm quite lucky exposed to personal finance at an early age, started job 19, bought first home 28, got laid-off work 36 amid covid-outbreak, and at once I consulted an advisor to handle growing my finance. As of today, I'm only 25% short of my $1m goal after subsequent investments.

[@ChristianKelv]

this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation

[@ClarkeGriffiny7]

My CFA ’Melissa Terri Swayne’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

[@BellamyGriffin19]

She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.

[@lyndonrichards5279]

I agree with the simple funds,but ditch the bonds and add a sattelite fund such as a nasdaq tracker.

[@gorkyd7912]

If you're actually poor and you put your few thousands in index funds you're going to at best have a few thousand dollars that beats inflation. Meanwhile your wages are going down and expenses are going up. Investing is for rich people who have enough money that a modest return actually means something.

[@lyndonrichards5279]

@@gorkyd7912 really, I've just done 35% for the last 12 months and my portfolio is over 500k. 15% a year will double every 4.8 years. Your comment is ridiculous.

[@nunomoto1889]

​@@gorkyd7912 So you should just let your money get eaten up by inflation?

[@gorkyd7912]

@@nunomoto1889 If you're poor you should invest your money on staying healthy #1 because being unable to work is the biggest risk. You should invest it #2 on increasing your own income. Sometimes that just means saving a 3 month emergency fund so you can quit your low-paying job and move somewhere more affordable with some time off to find a better job. Sometimes that means starting a business.

[@Sean-fj9pn]

QQQ and SPY are much better than breakeven in a bullmarket.

[@red0pineapple]

Was expecting to be generic clickbait garbage, but this was actually a very well-informed video! Kudos

[@JaNouWatIkVind]

🤔

[@nextlevelcooking9039]

There are a handful of hedge funds I absolutely would love to invest in. The only problem is I don’t meet the $10 million minimum investment requirement 😂

[@JamesShack]

Haha exactly.

[@williewonka6694]

Consider yourself lucky.

[@g.t.richardson6311]

Most Hedge funds have a long history of hitting the big time for one year Out of 10 or 15 years and making 116% return, And then go on a nine year run of losing 15, 18, 22, 27% etc

[@jamesodell3064]

@@g.t.richardson6311 And bragging about their one time hit to get more investors.

[@OyunBabus]

Biggest lesson i learnt in `2024 in the stock market is that nobody knows what is going to happen next so practice some humility and low a strategy with a long term edge.

[@SophieLoschy]

Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.

[@MesutMilleliri]

A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.

[@SophieLoschy]

How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?

[@MesutMilleliri]

Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with *Julianne Iwersen-Nemann* for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.

[@RS00010]

Bots

[@OllieX123]

Rich people already have plenty of money and don’t need to build wealth, they just want to conserve it. So they’re gonna go for less risky assets, but for the rest of us we still need to build it.

[@leonhenry4861]

Exactly, if they already earn 500k+ after several years or earning it, it’s really about keeping that cash safe and away from taxes and messy divorces. The rest of us are trying to turn 100k into 1 million, which is why a lot of us lose money.

[@lystraeus-]

Great video, James! However there is one asset I want your opinion on: farmland. Unlike residential property (over-exposed for most) and commerical property (business cyclic, rich people's fun money, just a sector fund in the case of REITs) it actually does offer a distinct asset class. However, it's extremely hard to get into unless you're a farmer. And as far as I've seen, there's no direct property fund investing in farmland in the UK.

[@danielberger3669]

kzbin.info/www/bejne/qobIYaZ4bJeciKM Same principle would apply to farmland ;)

[@lupin8750]

Too many bots in your comment section but great video as always

[@JamesShack]

Tell me about it

[@AudaciousBean]

🤖 Have you heard of Gina Craig? I invested $35,000 with 8,000% return.

[@AudaciousBean]

🤖 I too increased my investments with Gina Craig! You will not regret reaching out to her team!

[@AudaciousBean]

🤖 I like big assets, I cannot lie! Other brothers cannot deny! Call her 1 (800)

[@AudaciousBean]

865

[@QuincelSC]

Given the high fees of these alternative investments mean most rich investors would have done better just with huge index fund investments, I'd be interested in a video on why they use alternatives given the downsides. Is it really smart for them or do they just get suckered into it by sales? You discuss this a bit at the end but is there more (or more rigorous evidence you could discuss)?

[@RobCLynch]

Good point. It wouldn't surprise me if rich people use high risk ventures as tax write offs (assuming some assets create a loss) so that they could offset their losses against capital gains.

[@philipjamesparsons]

You beat me to it. Maybe they are influenced by others in their circle, investing into venture capital funds. Index funds investments would have made a rich person very rich over the last ten years.

[@pauliusmatiusovas4102]

Yeah like rich invest to take losses and you invest for profit, keep dreaming

[@KirkFickert]

@@pauliusmatiusovas4102 It depends. Like this year I'm aiming for a loss on farm incomes since that's in a Trust because how that Trust is taxed. Granted I'm doing things like fixing a shed that took wind damage a couple years ago, getting ditches cleaned out and dredged and other land improvements, some of which needs to be done, but given the option of spending it vs. losing 37% to taxes. And if it goes negative this year I can write off other gains in that trust. Now at the end of the year I'm putting all the farms into a LLC vs. a network of the 4 Trusts things current sit in...

[@sznikers]

Cause the best dumb money is inherited money ; )

[@A-Name-101]

The mantra KISS is usually the best rule to follow. So for me that is low cost tracker funds in an isa & pension.

[@Jeffybonbon]

The majority of homes in the past 20 years have not beaten Inflation

[@BlaBla-jj6sh]

@@Jeffybonbon Neither has your wage. And as far as homes are concerned: they are all about one thing: LOCATION. Homes in popular locations have absolutely beaten inflation - and then some.

[@mrsterling5306]

He is correct, your primary residence is NOT an asset! If you are renting out 1 or 2 of the bedrooms in the primary residence, then that property is in fact an Asset cuz it is PRODUCING INCOME.🙂

[@Insertnamehere3000]

In my experience many rich people are directly investing in real estate leveraging debt so they don’t have to pay much tax. I suspect this is more common vs purchasing units in a fund.

[@williewonka6694]

really good point. Instead of income and Capital gains, they live on debt, which is not taxable.

[@hTyKn1]

I'm sticking to my index funds. Warren Buffett famously won a $1m bet that a hedge fund manager couldn't beat the S&P500 over a 10 year period. He won easily and if it's good enough for Buffett then...

[@al4xs]

The longer I have been into investing as salary increases etc the more I am favouring simplicity. All world Etf in an isa, some cash savings accounts and obviously heavily into S&S SIPP with higher rate salary. My individual stock picks have not really done better than S&P. And when you at in time, effort, keeping up with news etc... It's just not worth the hassle. The mega rich live in a different world. Cant really apply same logic to the average person.

[@tamwilfred]

Stock picking can be challenging. For most investors, broad-based index ETFs are an excellent way to build wealth. However, if you enjoy researching companies and allocating a small portion of your portfolio to individual stock picks, it can be an engaging and potentially rewarding experience. That's my approach - using a small percentage to make informed bets and add a touch of excitement to my investment strategy. For example, I was fortunate to recognize Apple's potential in the mid-2000s and invested a small amount that has grown significantly.

[@paulheny]

Let me share something with you since you all don't know me and why caring President is good for our country! My parents and I were earning roughly $125,000 a month off the stock market while Trump while in office, when Biden took over we lost a few million! Invest, Invest while you're young and retire like me at 55 of age!

[@islaperez1151]

I agree. Even with great opportunities, we should proceed cautiously. Seeking market analysis or advice from certified market strategists is important.

[@Jerryrollins78]

I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!

[@paulheny]

If you don't want to crash and burn, you should seek the advice of a fiduciary counselor when you first start out. Fiduciary-counselors have exclusive information and data paths that are not available to the general public. Understanding the direction of my Fiduciary-counselor

[@paulheny]

I've been in touch with a financial analyst ever since I started investing. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders

[@Jerryrollins78]

Please how can I liase with such experts? I am seeking for a very effective investment approach for my savings which gradually depreciates in value due to inflation

[@VRNocturne]

While they are stocks, I would think BDCs might be a Private Equity-esque investment? After all, BDCs invest in (or make loans to in exchange for equity stakes) private companies. They often provided dividend income along with potential for share price appreciation as well. So, obviously, not the EXACT same thing, but it's a way to gain access and BDCs diversify their holdings, which, by proxy, diversifies your piece of said BDC.

[@scottdaniels5976]

For Private Equity, best for avg investors is BX, KKR, ARES, & OWL and BDCs like ARCC, MAIN, CSWC, FDUS, OBDC...On Hedge funds, I like when Buffett challenged any Hedge fund Mgr vs the S&P 500 over 10yrs he would give them $1M.....Buffett won.

[@russellsharpe288]

3:33 "Investing is not just about trying to get the best possible return. It's about trying to deliver the best possible return for a given level of risk." If 'risk' means volatility here, as it usually seems to when investments are being discussed, then I don't understand why the rich should care about it at all. The market value of their investments could drop by 90% and stay there for years, and it wouldn't impact their day-to-day standard of living one jot. So why not just go for the best possible return over the longer term, and to hell with the shorter-term volatility ie risk? ah yes, you essentially say exactly this seven minutes later...

[@Whoop0]

The rich are normally saving for multiple generations, not just them. Their kids won't have anything if they've blown it all on overly risky investments.

[@JamesShack]

They might have different goals and objectives. Some will be looking for more capital preservation as opposed to outright returns. The other thing they can do is use leverage which is much more effective if you have a portfolio with a good risk adjusted return.

[@russellsharpe288]

@@Whoop0 That's why I began with the conditional "If 'risk' means volatility..." In this sense, which is what risk almost always means when discussing portfolio return vs risk, a high-risk portfolio isn't defined as one which has a greater than usual probability of dropping to zero value. It is simply one whose short-to-medium-term fluctuations in value are unusually high (as a percentage of the given value at any time). But for a rich investor, with plenty of liquidity to service his/her day-to-day needs, this should not be any kind of an issue. So s/he should be able to focus on higher return over the longer term, and ignore shorter-term risk (volatility) altogether. This will be even more the case if the time frame in question extends over multiple generations.

[@ThomasSmith-z5q]

Your top priority right now should be finding a book 25 Money Secrets From Donald Trump, reading it will change your life, trust me

[@AdamLevcross]

This is a very informative video, although I'm still confused. Will copying them really be all it takes. I'm worried about retirement planning and I want to ensure a comfortable future. I've worked hard my entire life and I want to enjoy the fruits of my labor without financial stress. I'm really concerned about whether I've saved enough and invested

[@KwegansHub]

That's completely understandable. Ensuring financial security in retirement is crucial. Have you considered consulting a financial advisor?

[@GibsonJames-gr3on]

That's true. Assess to reliable information and professional guidance is key to success in investing. That's where a CFP comes in. You should definitely consider working with one

[@AdamLevcross]

I have been advised on that for a while, but finding one who understands what I want and can work with me to that accord is whom I'm in search of. Any recommendation please?

[@KwegansHub]

Yes I do, I recommend JOSEPH NICK CAHILL to you. He is a renowned figure in his field. I recommend him to you because I've been where you are and understand your need for an open ear

[@KwegansHub]

You can look him up online, his website will direct you on how to reach out to him

[@mattmurdoch4345]

Is there a minimum amount that you need to make it worth to consult with a financial advisor?

[@l.d.t.6327]

Just an analogy: Is there a minimum disease you need to consult a doctor? Ofcourse it’s worth it. You pay some 100ths of dollars, while being informed and making the right choices can result in differences of 1000s (or 10s of 1000s) of dollars.

[@MrDuncl]

Something you missed is that the average middle aged person should have a large proportion of their wealth invested in a pension. Mine is definitely worth more than my house. I have no idea how the DB part is invested while the choices given by my employer for the DC part were very simplistic (I chose the World Tracker). In contrast the U.K's Ultra Rich probably hit their lifetime allowance years ago. Yes I know it has now gone but only recently.

[@sinematographers3344]

Larry Fink says BlackRock’s deal to acquire Preqin could lead to indexing private markets

[@edwardkenworthy7013]

"Private Equity Firms Are Typically Very Dishonest" kzbin.info/www/bejne/qGTCZWSNndulZ6s

[@Junaid_Ellam]

The little exploration at 10m was 10/10

[@polivios13]

Forgot to mention private credit

[@MrAlwaysBlue]

Do you mean peer to peer lending?

[@tamwilfred]

@@MrAlwaysBlue He's likely referring to the bigger picture. These are most likely small to medium-sized companies (SMEs) that need capital for expansion. This could be a startup or an established business experiencing growth. The funding stage could be Series A, Series B, or bridge funding.

[@chuckmurray1825]

Thanks for another great video. Always good to see the big picture from the eyes of a professional.

[@JamesShack]

Glad you enjoyed it Chuck.

[@chuckmurray1825]

@@JamesShack Guess who is re-retiring next year and moving to Europe?! Waiting to see the new NHR details from Portugal. It's now down to Puglia, Italy or the Algarve in Portugal.

[@JamesShack]

@@chuckmurray1825 congrats! They’re all great choices.

[@keywanataeii7307]

Thank you very much for helping newbies understand complex trading issues. Your channel is truly valuable for anyone who wants to become a successful trader.

[@edbifulco]

Regular people invest to make money. Rich people have a financial advisor to KEEP and not lose their money. Very different.

[@stevenrix7024]

Could just buy government bonds for a guaranteed 4-5%, in that case…

[@brymills]

Except rich footballers… they seem to invest to keep rich people rich without risking their own money..

[@e.t.theextraterristrial837]

That's because they already have a lot of money. Most of us plebs are just trying to get that elusive goal of buying a house. If I was rich, I'd own at least 2 properties. One for my own, the other as investment.

[@mmabagain]

@@stevenrix7024 That 4-5% will be down to 2-3% in a year or less.

[@Sean-fj9pn]

A 4-5% annual return on your money is actually a loss. You need 6-7% to just break even.

[@benjamindavidson22]

Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them., well at least my advisor does lol

[@frankbarnes22]

Investors should be cautious About their exposure and be wary of new buys, especially during inflation. Such high yields in this recession is only possible under the supervision of a professional or trusted advisor.

[@Johnlarry12]

I agree things are different now, same market strategies applied over last decade wouldn’t apply to the current market, so to actually figure out how to outperform the market and stay afloat for the next decade, you should reach out to a financial advisor, that’s how I’ve managed to properly diversify across the right asset classes and gained over $450k in profit this past couple years.

[@monicawill5]

Please pardon me, who guides you on the process of it all?

[@Johnlarry12]

My CFA Carol Vivian Constable , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

[@monicawill5]

Just ran an online search on her name and came across her website; pretty well educated. thank you for sharing.

[@memecentral2890]

What's in the "other"???. I want to know. (The black segment in the pie chart).

[@JamesShack]

I would like to know too, they don't actually specify it in the report. privatebank.jpmorgan.com/eur/en/services/wealth-planning-and-advice/family-office-services/2024-global-family-office-report

[@JamesShack]

Probably things like collectables.

[@AudaciousBean]

Art 😩👌

[@dennisgeutjes1759]

Thank you for the great summary! However, I am missing an option that is within my possibilities as a retail investor. Investing in private equity at the company I work for (6000+ employees, multiple sectors, 100+ years old). Would this be wise to add to my portfolio, and how does it compare to public equity? I now hold 95% in an all world ETF. 25 years horizon, relatively high risk taking.

[@junkequation]

We're trying to become rich. They're trying to stay rich. No, you shouldn't copy them.

[@TheZippyMark]

This is an excellent video, so well explained 👍

[@JulianaBondtsG]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[@JulianaBondtsG]

@@FlorentGulliver Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY* , a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.

[@JulianaBondtsG]

@@FlorentGulliver *MARGARET MOLLI ALVEY*

[@JulianaBondtsG]

Lookup with her name on the webpage.

[@ndukweobinna1258]

@@FlorentGulliver *MARGARET MOLLI ALVEY* her trading strategies is working for me for more than a year now and I’m making good profit from the stock market and she's 100% honest, reputable and trustworthy

[@musicjunk8266]

video starts at 16:40

[@audience2]

Agree.

[@Roxannwatts]

As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or diversify ?

[@ClaudiaSchreiber-b1p]

DCAing amongst various assets is a good strategy and can help reduce the impact of market volatility and thus a good strategy if you are looking to compound . However it is important to consider financial advisory when investing

[@KristensenJørgensen]

True, initially I wasn't quite impressed with my gains, opposed to my previous performances, I was doing so badly, figured I needed to diversify into better assets, I touched base with a portfolio-advisor and that same year, I pulled a net gain of 550k...that's like 7times more than I average on my own.

[@Robbertskypes]

This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfoIlo allocation

[@FrankGibson-s3r]

I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?

[@KristensenJørgensen]

Viviana Marisa Coelho is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.

[@therealoliverhappy]

This might be the most valuable financial education (once pay yourself first is in place). Thank you

[@SaadonAksah]

Thanks! I should figure out the percentage of reits that I want in my portfolio 🤔

[@andrewbatey2636]

Hi James, thanks for all the content I really enjoy all your videos. Recently come across the book lifecycle investing by Ian Ayres and wanted to know your thoughts on this approach. I’m 27 and have some time till retirement. A leveraged approach makes sense in a lot of ways seeing as I don’t actually need to access my pension for 32 years. Was wondering if you might consider making a video on the topic? Keep up the great content - thanks!

[@JamesShack]

Hi Andrew, I have not read the book, but I am familiar with the idea. How are you thinking about getting that leverage?

[@andrewbatey2636]

Hi James, thanks for replying. ​​Just to be clear, I haven’t committed to this yet as you can imagine I’m naturally sceptical. So far all I have come across is multiplied ETFs such as SSO/ TQQQ. The expense ratios are high at 0.95% (relative to global vanguard trackers) but that seems low vs loan borrowing. My other query was around the feasibility of leverage in a high interest market. Honestly I don’t know the best way to facilitate it and wondered if it’s a subject you are asked about enough to make a video on? Cheers again!

[@Whoop0]

@@andrewbatey2636 Leveraged ETFs are dangerous and not the same as a leveraged portfolio, they're designed to be held in the very short term not long term. Research volatility decay.

[@eddied112]

James - once again thank you for a clear and well presented video that illustrates whilst we may think the grass is greener... it often isn't.

[@PaulaCarbonell-n7j]

One lesson I've learnt from billionaires is to always put your money to work to generate wealth, and diversifying your investments. I'm planning to invest about $200k of my funds in stocks this year, and I know I’ll make profits.

[@wmwoods-l4f]

You are right. The best approach I feel is to diversify investments by spreading investments across different asset classes like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown.

[@j.ottinger]

That makes sense. I’ve been using a financial market expert for two years now and I own a six-figure diversified portfolio from investing in stocks. I want to diversify more this year, though.

[@speak2Gary]

Could you kindly elaborate on the advisor's background and qualifications?

[@j.ottinger]

My CFA, Annette Marie Holt is a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

[@karitanaw]

Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.

[@keekeefries6298]

It’s simple, average people need to build wealth, and wealthy people need to protect wealth…

[@molocouk]

6:35 spotted the moment when James had his 3rd glass of wine. 😅 Great video as always James, thank you.

[@JamesShack]

Someone else has called this out, but I still can't see it! What's the mistake ?

[@molocouk]

@@JamesShack Just the minor spelling mistakes in the 'low investment minimums' line. Sorry for being a pedant!

[@battj1]

Brilliant video, thanks James, so very helpful!

[@kevinu.k.7042]

I'm new to your channel. This was excellent thanks. Though in passing I would say that your comments on homes as an investment were a little trite. First we need to live somewhere. Owning your home means you are not bleeding wealth on rent. Secondly it is capital to bequeath to the next generation. It matters little if someone sees their house as an investment, or not. In practical terms it is there as a fact. Anyway - I look forward to watching more of your work. Thank you.

[@johnboyginger]

The ability to afford top Financial Advisors and tax lawyers on-call helps too. 😉

[@williewonka6694]

I doubt that, those guys are largely money sucks that cannot beat the index funds.

[@scottiswatchingtele]

i've never seen a top-notch financial advisor. they're just money strippers

[@SoundKing]

Most true rich invest in themselves and bet on themselves. They make their money through self employment, then they invest elsewhere...

[@MK-zb5nm]

Great video and very eye opening. Well done and thanks for educating viewers.

[@JamesShack]

Glad you enjoyed it!

[@pingupenguin2474]

You can't invest like the rich when you are just starting out and don't have much money. Some investment types have minimum amounts you have to deposit.

[@marianelavelasquez9696]

You are the best!!! What a wonderful, informative video 🎉

[@stevenfarrall3942]

Very articulate. Point. I've been saying this (with a few extra insights which I am not going to share with a competitor 🙂 ) from the late 80's.

[@AnthonyJustice-i9x]

I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Brooke Miller.

[@Piligarcia-zs7bo]

She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states

[@ReuletRikki]

The very first time we tried, we invested $1000 and after a week, we received $5500. That really helped us a lot to pay up our bills.

[@GertonTootle]

I'm surprised that you just mentioned and recommended Brooke Miller, I met her at a conference in 2018 and we have been working together ever since.

[@masterotrunks]

I'm new at this, please how can I reach her?

[@DebbieSimone]

I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills

[@yuvalramon]

Thanks very nice analysis, but to be able to get in right you should add leverage and debt presentage on any asset type. Hope you can add that

[@sineadodonnell986]

Can I book a consultation with you living in Ireland

[@johnjordansailing]

What about PMs? BTC? Also, are most financial assets in reality highly correlated?

[@daleal7250]

Putting money into BTC isn’t investing, it’s speculation which is more akin to gambling. Don’t put any more money into it than you are willing to lose.

[@johnjordansailing]

@@daleal7250 You do you buddy.

[@albertboulderwardthe3rd590]

How do we report them James?

[@JamesShack]

The three dots next to the comment.

[@albertboulderwardthe3rd590]

@@JamesShack Thanks, have now reported.

[@DonaldUrquhart-ds9ir]

Thank you James. I really appreciate the time you take to make these videos. They are excellent, and have stoked a real interest in me as regards my own financial planning. I particularly like the honesty of your videos. They helped me to gain sufficient knowledge and to feel informed enough to seek out a Chartered Financial Planner circa 8 months ago. At the start, I must confess that I had a nagging suspicion that they might try and persuade me to invest in some of these higher-risk and impenetrable (to the lay person at least) products, which, thankfully, was not the case. In fact, its been a really good experience for me so far. Looking forwards to your next video and sorry the 'Fulham investment' hasn't been great - yet!.

[@JamesShack]

Thank you for taking the time to comment, and all the best with your financial planner !

[@iandavies7]

Good video, as always. However, I was hoping to learn a bit more about the schemes and structures they use to minimise their tax liability.

[@valk_7233]

So, just going for stocks, bonds and real estate is the most simple way to build wealth and be mostly well diversified?

[@valk_7233]

@JamesShack_info Begone bot!

[@joekuhnlovesretirement]

Great summary.

[@yvonnehyatt8353]

The Rockefeller’s method is good too. Thanks

[@arubaga]

My model portfolio is 60% VTI, 20% VGIT, 12% VCIT, 8% VMBS. For bonus point guess my state.

[@ronloftis9080]

You are reclined in a chaise lounge sipping a Mai Tai in Aruba in a state of bliss.

[@BF1GUN]

Nice one, James. Thank you.

[@gerry2345]

I like this vid.Good insight and interesting..

[@shamone10]

Man if I knew how to edit videos I so would have gone for your video editing job haha! Keep up the good work, really enjoy all your vids

[@JamesShack]

Glad you enjoyed it!

[@lenb9037]

I agree with the points made in this video but the comparison of the average investor to the wealthy investor should be tempered by the wealthy investor likely having acquired their wealth from starting a private company and then buying valuable property. One would therefore expect these to be a major part of their investment and have nothing to do with choice on their behalf.

[@MrC0MPUT3R]

TL;DW Rich people aren't rich because they invested like that; they invest like that because they're rich.

[@victorpetrenko2736]

Wonderful, all encompassing bur concise and clear explanation of the alternative investments and their applicability to an average investor. Thank You for doing this! 👍🏻

[@mikerodent3164]

I think some of this irrational behaviour at least is driven by two things: 1) hiding/disguising what you have and 2) gaming the tax systems of the world

[@mikerodent3164]

@GrahamStephen¹²⁸¹³¹⁷⁵¹⁴⁰ Thanks M8! Have you ever looked up the meaning of the words "sad w*nker"?

[@daliusss]

Very insightful 🎉Thank you!

[@jamesodell3064]

The more complex a financial product the better it is for the seller and worse for the buyer.

[@TenantRepGuru]

Excellent summary.

[@RobCLynch]

For me, i dont understand bonds (never have) and given their performance over the last 18 months, im happy with my unit trust funds. They're open ended and very well diversified (covering all stocks). Since 2002, they've grown well and even a huge bear market wouldn't do much damage. My benchmark is the 1929 crash and if a repeat of that occurred, i would still be in profit. I think you're right to highlight that rich people will entrust their capital into the hands of expensive advisors, because they can afford to. But im happy with my 5 global funds.

[@JamesShack]

Interesting how you’re anchored to the price you bought at (as most people are). By that logic, if someone invested into exactly the same funds as you hold today, and there was a crash next year. They would be more likely to sell than you. Even though you both own the same thing. It’s irrational, but a key part of investors psychology.

[@joeyjebouskie6632]

Before I even watch this episode, I'll side with Morgan Housel; no, you (the average person) shouldn't

[@JamesShack]

Agreed.

[@frawdulent]

Warren Buffett is sitting on $150 BILLION in cash. He’s waiting for an opportunity. I think it’s a wise move. Be fearful when others are greedy. Be greedy when others are fearful.

[@ms8742]

Very well done and sound advice. Once you get to where you can retire or close to it, you want to preserve your capital. Don't take unnecessary risks. One other investment to consider if you are at retirement age is an IRA with a fixed annuity as part of the investment. I locked in 5.5% for five years. Safe with no risk and no tax hit.

[@PeterParker-wj3cr]

The average joe can't copy the rich. Here is why. There is a huge difference between investing to become rich vs investing once you're already rich. Many of the wealthy, didn't become wealthy via stock market. They became wealthy from selling a business. So once your rich alternative assets make more sense.

[@javiervillasenor3698]

The biggest issue is not that the average person doesnt know how to invest, but that they dont have the capital to do so.

[@seanbyrne2220]

Superb video you should do more

[@JamesShack]

Thank you, I will