Chris Larsen breaks down how ultra-wealthy people actually allocate their money: roughly 20-30% stocks, 25% bonds, 25% real estate, and 25% alternatives. Most didn't get rich from the stock market but from owning businesses or property.
You look at the ultra wealthy and they're putting maybe 20, 25, 30% in stocks. They have 25% in fixed income, 25% real estate, 25% in other alternatives. That's not what we hear from our advisors. And again, it's typically because they. They're not incentivized. They're not even in some cases allowed, nor do they understand how to model it and do that.
Right. Or they don't know about it. And it's not malicious, necessarily. Think about the wealthy people that you know or that you know about. I can almost guarantee not one of them became wealthy from the stock market. Right. They either own businesses like Warren Buffett or own real estate. Right. Those are the two ways to grow your wealth. Throwing money in the stock market. You know, the only, the only use I see for the stock market, for me personally, and everybody's different, I use it for liquidity, especially when, you know, interest rates were really low. There was no other place where you could get liquidity with some return. That's my use for the stock market.
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