Flip and Danny Robison break down how the ultra-wealthy allocate their money using Tiger 21 data from members with $50M+ in assets. Real estate, private equity, and public equity make up roughly three-quarters of their portfolios, with real estate around 27-28% and each equity type 21-25%. They explain why multifamily real estate and private equity attract these investors: stability, above-market returns, and inflation protection.
Questions this video answers
$50 million (minimum investable assets).
27% real estate; 22% private equity; 25% public equity.
28% real estate; 24% private equity; 21% public equity.
Hey, everybody. Flip and Danny here, founders of the Freedom Real Estate Group, family of companies. And welcome to another episode of our.
Podcast, which is called Freedom through Passive Income.
There we go. And this episode is entitled where do the Mega Wealthy Investors? And this was just something that we. I saw a presentation of a couple months ago, you know, not where the 1%. What the 1% do is what the 1% of the 1%, you know, and I didn't know about this, but there's a website called Tiger 21 and not Tiger Beat. Right. Wasn't that the teen magazine?
I have no idea.
Anyway, so tiger21 and the website, you have to have $50 million and minim investable assets just to be a part of that website. So you're saying it's exclusive?
Yeah, it's a wee bit exclusive.
Okay, gotcha.
Yep. So we took some reports from that website to find out where if everybody in this class of investors, this club of investors, has 50 million at the very minimum, where are they putting that $50 million per person. Right. And so as suspected, real estate was the top number one. Shocker. And private and public equities were number two. And depending on the years that they studied. So Flips has got a graph. If you're watching on YouTube, you're going to see the graph that Flips holding up here right now. And if you're listening to the podcast. Sorry, we'll walk you through it here real quick. But we're just going to talk about the top three, which we just said. So in quarter three of 2020 to quarter two of 2021, the investment allocation was 27% of their money went into real estate, 22% went into private equity and 25% went into public equity. So none of those numbers are very far off. But top three then if you look at the quarter three of 2018 to quarter two of 2019, then you're going to see similar numbers still in the 20s, but real estate was then 28%, private equity was at 24% and, and public equities was 21%. So that's like three quarters of this graph is between real estate, private equity and public equities. So we're going to talk about two of them specifically because. Well, because private versus public. Public's hitting the stock market, you've got other additional risks involved in those types of things. So we're going to talk about why they invest in these. And it's because of the above market returns, right?
Absolutely.
We know the consistent consistency and the stable nature of Real estate in general, especially multifamily, is very, very strong and we get really high returns. Also, real estate is a hedge against inflation. Then go to private equities. What is private equities? It's when you're investing in a private company. And the reason I separated private versus public equities is because private equities aren't on the stock market. So public equities are going to have the volatility that you might see in stock market because people who are unsophisticated investors who are investing in the stock market and they're reacting based on emotions. When you're uncertain, you're very, very emotional and you're fearful and so you usually sweep up all your money. When that happens, that's when the market gets really volatile. So public equities is not something that Flip and I do a lot in. We certainly do a lot in private equities. But the wealthy, you can see that they even dip into the public equities. And I'm sure that they're also hedging and doing things like in the food market, right? Everybody needs food, right? So you know that despite inflation, people have to eat. And so investing in those type of, you know, equities might be a good idea. I just read an article about pets and the pet industry that even during COVID it thrived. People like us, you know, we take care of our pets, our pets are like our children. And we're going to continue to spend money. Even if prices start rising, we, we are going to continue to spend money. So that's another kind of recession proof type world that I'm sure that if it's in the public equities, I bet they're investing in those. But the private ones, they're not going to be as affected on the stock market, right? Because they're not public. And so they're not going to be affected by those swings. And as long as there's a track record of success and they're following the demand, supply and demand, and have the ability to hedge against inflation, that's where the wealthy are putting their money. So I thought it's always interesting to watch. You always flip an eye, always find where we want to go. By looking at the people we say, hey, you are where we want to go. What are you doing? Where are you investing? How are you doing it? What have you built? How did you get there? What mistakes did you make? How do you wish you would have done it? When you start, we ask all these questions because we want to get where that person is. Well, this is one of those examples of, hey, these guys are pretty wealthy, probably pretty intelligent about what they're doing. And they have their own little secret circle.
Yep.
What are they sharing with each other? Right. And they're all three quarters of their investments are in equities and real estate. Like, that's telling. And I thought, you know, I bet you more people would like to hear this because I found it really interesting. Not that that's kind of what we do too, but it's always nice to go, oh, hey, the ultra wealthy are doing it.
That's right.
We're on the right track.
That's right. And so when you saw the tiger21 website, did you put a date on when we're on there?
Oh, I haven't yet. But you know that goal line of mine that keeps on moving, it just.
Got a little further away. Well, we hope that you enjoyed this episode. Make sure you're heading on over to our website, freedomcapitalinvestments.com to join the investor club. But make sure we're also on Facebook and LinkedIn. All those. We have special groups there. So make sure you're going over there to talk to the gang, get your questions, and let us know how we're doing all that fun stuff. But hit the like button. Yeah, hit the like button. If.
If you want to invest like the ultra wealthy.
Yeah, if you want to get Tiger Beat.
I'm gonna have to Google it.
Now. Isn't that the magazine from the 80s, the. With the teen magazine Tiger Beat?
I think so. I wasn't one of the girls who bought those.
Hit the like button. If you remember Tiger Beat, we always like to all of our episod with invest smart, live happy. Bye, everybody. Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on this show are not guaranteed. All investment strategies have the potential for profit or loss.
