Welcome to Extreme Investor Network, where we delve into the world of finance and provide unique insights into investing strategies for the ultra-wealthy. In this blog post, we will explore how centimillionaires, individuals with a net worth of over $100 million, approach investing differently from the average investor.
According to Kevin Teng, CEO of WRISE Wealth Management Singapore, there are approximately 28,420 centimillionaires globally, with concentrations in cities like New York City, the Bay Area, Los Angeles, London, and Beijing. These individuals have access to robust financial infrastructure, vibrant entrepreneurial ecosystems, and lucrative real estate markets, making them selective when it comes to investments.
Unlike the average investor, centimillionaires do not invest in get-rich-quick schemes or publicly traded equities. Instead, they focus on preserving their wealth and legacy. Salvatore Buscemi, CEO of Dandrew Partners, highlights that these wealthy individuals typically favor investing in stable pieces of real estate, such as Class A properties and trophy assets.
Additionally, centimillionaires often utilize family offices as investment vehicles to manage their wealth efficiently. These family offices handle a wide range of financial matters, including inheritance, household bills, credit cards, and family expenses. Andrew Amoils, an analyst at New World Wealth, notes that the number of family offices worldwide has tripled since 2019, managing an estimated $6 trillion in assets.
Furthermore, ultra-high net worth individuals explore alternative investments like buying stakes in professional sports teams. This investment avenue offers exclusivity and status, allowing wealthy individuals to mingle with similar peers. WRISE’s Teng emphasizes that centimillionaires pay attention to fixed income, private credit, and alternative investments, seeking unique risk-return profiles outside of traditional markets.
In conclusion, the investing strategies of centimillionaires differ significantly from the average investor, focusing on long-term wealth preservation and alternative asset classes. Stay tuned to Extreme Investor Network for more exclusive insights into the world of finance and investing for the ultra-wealthy.
