The stock market has historically been a strong generator of wealth, with an average long-term return of 10% and doubling in value roughly every seven years. While most millionaires have utilized the stock market to build their wealth, they often diversify their portfolios with alternative assets.
Dave Ramsey, Robert Kiyosaki, Elon Musk, and Mark Cuban are four well-known millionaires/billionaires who have diversified their holdings. However, it’s important to remember that these investors may have different risk tolerances and what works for them may not work for everyone. It’s best to consult with a financial advisor before making any investment decisions.
Dave Ramsey: Mutual Funds
The person mentioned in this news, Dave Ramsey, is known for his advice on staying out of debt. As an investment planner, Ramsey tends to be more conservative, and he advocates for mutual funds. Although he may invest in other assets, his website indicates that he divides his mutual fund investments into four categories: growth, growth and income, aggressive growth, and international.
Ramsey advises against investing in bonds, fixed annuities, single stocks, CDs, variable annuities, real estate investment trusts, cash value or whole life insurance, or separate account managers. However, it is important to keep in mind that wealthy investors may have different risk tolerances than others and consultation with a financial advisor is always recommended.
Robert Kiyosaki: Real Estate, Precious Metals and Crypto
Robert Kiyosaki is the author of the “Rich Dad, Poor Dad” series of books, which have become the #1 best-selling personal finance book of all time. His philosophy centers around generating more incoming cash flow than what you have flowing out for your living expenses. One of Kiyosaki’s main investments is in real estate, focusing on high cash-flow properties that he can buy and hold for long-term wealth. He also reportedly has investments in precious metals and cryptocurrency, but his primary focus is on generating high cash flow.
Elon Musk: Cryptocurrencies and Private Equity
Elon Musk, who is considered one of the richest people in the world with a net worth of around $188 billion, is widely known for his companies Tesla, SpaceX, and Twitter. While most of his wealth comes from these popular ventures, he also invests his money through a family office called Excession. A family office is a private investment firm that manages the funds of wealthy families like Musk’s.
Although Musk himself does not invest directly in projects outside his companies, such as SolarCity and The Boring Company, he has reportedly invested in private equity, real estate, and cryptocurrency through Excession. The exact details of these investments are usually kept private. Musk has made public statements about his cryptocurrency holdings on Twitter several times, and at one point was rumored to own at least $5 billion worth of Bitcoin.
Mark Cuban: Decentralized Autonomous Organizations and Smart Contracts
Mark Cuban is renowned for his reputation as a savvy investor in technology and as a former investor on the TV show “Shark Tank.” According to Cuban himself in an appearance on “The Problem With Jon Stewart” podcast, “80% of the investments I make that are not on ‘Shark Tank’ are in or around cryptocurrencies.” However, he isn’t primarily investing in speculative cryptocurrencies like Dogecoin.
As a technology expert, Cuban is more interested in the underlying blockchain structure and smart contracts of the cryptocurrency world. Specifically, he is interested in investing in decentralized autonomous organizations, which he believes will produce “game-changing businesses.” According to Cuban, industries such as banking and insurance will be “going to change” due to these new technologies.