When thinking of the Forbes 400 list of wealthiest Americans, many would assume that most of the 400 are titans of Wall Street who make money hand over fist through astute investing. But research shows that’s not the case. Mark Hulbert (marketwatch.com) analyzed the investment performance of the super-rich and found that not only did they not beat the benchmark S&P 500, they failed to match the common diversified 60/40 stock and bond portfolio as well. The truth is, almost all the 400 made their money elsewhere and then treat their rather low-risk investing as a way to conserve and keep, rather than grow, their fortunes.
The Super-Rich strategy
| September 21, 2020