Investing big money takes time, skill and dedication, according to the Millionaire Corner, a website published by the Spectrem Group.
The website’s study, $25 Million Plus Investor 2012, looked at the wealth-creation strategies of the very rich and found that: “More than 30 percent of these multi-millionaires spend one to five hours a week working on their investments, but most spend more. Fifteen percent spend 26 to more than 35 hours a week managing their wealth.”
“The average investor portfolio of $25 Million Plus investors contains a wide variety of investment products, indicating that diversification plays an important supporting role in wealth creation strategies.”
If you think that just might be time well-spent and are interested in joining the millionaire class yourself, the website publishes a how-to series of articles. The first offers some background on just how these folks make and manage their money:
“The wealthiest households generally are business owners. Professionals (i.e. doctors, lawyers, etc.) generally cap out at about $15 million while business owners and senior executives exceed those numbers.
“The wealthiest investors have slightly more aggressive risk tolerance than others. They are not the most aggressive but they are generally not overly conservative.
“Wealthy investors generally use professional advisors of various types. The number of advisors and their expertise varies based on wealth level. Additionally, wealthy households often manage a piece of their assets ‘on their own.’
“Portfolios are well balanced between stocks and bonds, managed accounts and other types of investments, including alternative investments.
“Real estate, especially income producing real estate, continues to be an important part of the overall portfolio.
“Wealthy investors are continually looking to invest in new ideas or businesses. The most successful often invest in a venture related to something they know and understand rather than an unknown idea or concept.”
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