Dans quoi investissent les (vrais) riches ?

The popular belief is that wealth correlates with real estate ownership, yet the wealthiest individuals are increasingly holding less real estate as a percentage of their total assets. This video argues that as one's financial level increases, real estate is often de-emphasized in favor of other asset classes. Studies, including one from UBS and Knight Frank, show that Family Offices hold only 15-25% of their wealth in direct real estate. Ultra-high-net-worth individuals, with over $30 million in liquid assets, hold even less than 15% in real estate personally. Instead, they increasingly hold company shares, either directly through private equity or via public markets like stocks and ETFs. The Achilles' heel of real estate for the ultra-rich lies in their specific needs. Most wealthy individuals (with over $10-40 million) amassed their fortunes through entrepreneurship, not traditional investment. As businesses grow, a plateau is often reached, overcome by acquiring other companies. This requires two things: proof of funds and liquidity. Real estate provides neither. When buying a business, a bank statement proving liquid funds is required, not property deeds or photos. A second need for deca-millionaires is the ability to borrow against assets as collateral, often for depreciating assets or to reduce tax friction, a practice known as a Lombard loan. For example, instead of selling $5 million in rental properties to buy a $5 million villa, an investor with $7 million in stocks can use them as collateral for a bank loan. This strategy allows them to earn, for instance, 5% on their investments while paying 3.5% interest on the loan, gaining a 1.5% delta without incurring taxes or fees from selling assets. Finally, the wealthy prioritize simplicity and peace of mind. Managing multiple properties across different countries for diversification becomes a burden. While some might achieve 12-15% returns on their portfolio, the ultra-rich often aim for 6-8% to cover expenses and generate a surplus, balancing return, pleasure, and constraints. This often leads to investing in small, high-value properties in expensive locations to maximize value and minimize management. Large properties, with their constant maintenance issues, become a headache for 11 months of the year, despite being enjoyable for a month. It's important to note that these observations primarily concern the financial elite. For those in earlier stages of wealth accumulation, real estate can play a significant role. In the first phase (middle class), real estate, often a primary residence or rental property, can represent up to 80% of one's assets. However, relying on a single income source like rent carries high risk. Liquid, diversified financial assets drastically reduce this risk. In the second phase (millionaire), real estate might include a primary and secondary residence or rental property, making up 40-50% of the portfolio. Yet, this still limits diversification and wealth creation potential. Real estate returns are often lower than what agents suggest. The third phase (deca-millionaire, minimum €10 million) typically involves a primary residence, a secondary residence, and potentially one rental investment, rarely exceeding 20% of the portfolio. Exceptions occur when specific deals, like those during a pandemic, offer above-market returns. University studies show real estate generates 3-5% net long-term, compared to 9-10% for an S&P 500 ETF. The hidden costs of real estate—taxes, maintenance, vacancies, and management fees—significantly erode returns, creating a substantial wealth gap over time. Nassim Nicholas Taleb's "Skin in the Game" highlights the importance of aligning interests. In stock market investments, CEOs' bonuses are performance-based. In private equity, like the speaker's firm onlineasset.com, fees are tied to outperformance, and partners invest their own capital. Real estate agents, however, profit from sales frequency and price, regardless of long-term investor returns. The UBS Global Family Office Report 2024, analyzing over 320 family offices and $600 billion in assets, reveals that ultra-rich families hold over 50% of their portfolios in alternative assets, with private equity being the primary component. This suggests that while real estate isn't inherently bad, asset allocation should evolve with one's financial stage.