Ever wonder how and where millionaires are putting their investment dollars to use? Goldman Sachs Apex Americas head Anushka Gupta joins Wealth to break down how high-wealth investors allocate their funds.
“In our work with very large family offices, we find that two key themes sort of emerge in their approach to investing. One is their ability to take risk and the other is their ability to bear illiquidity and be patient,” Gupta tells Yahoo Finance.
She notes that these investors usually maintain a large allocation to alternatives to cater to a multi-generational approach to wealth. Overall, Gupta recommends that investors of all net worths have a long-term plan and ensure their portfolios are diversified.
“I think the main thing is being invested over a long period of time versus trying to stock pick, because ultimately, one, you have to pick the right time to enter. If you sell, then you have to pick the right time to reenter,” she adds.
While some investors want to outperform the S&P 500 (^GSPC), Gupta advises against attempting to picking stocks and, instead, emphasizes the importance of working with professionals: “Stock picking is not easy for the everyday investor to do… Markets are pretty efficient. There’s a lot of information out there today, and so finding asymmetric information in return has become harder.”
Gupta highlights that high-net-worth individuals often invest in private equity and real estate.
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