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High net worth individuals \u2014 typically those with $1 million or more in investable assets \u2014 held large portions of their total portfolio in cash in 2024. According to a survey conducted by Goldman Sachs, wealthy individuals park roughly 20% of their net worth in cash and cash equivalent holdings (1).<\/p>\n
Higher market volatility and fears regarding persistently high inflation levels are a few major contributors to the shift away from equities and bonds.<\/p>\n
And at least some ultra-high-net-worth individuals seem to agree. Before retiring on Dec. 31, 2025, Warren Buffett \u2014 the former Berkshire Hathaway CEO and the world\u2019s ninth-richest person according to Forbes real-time net worth tracker (2) \u2014 had built the company\u2019s cash balance to a staggering $381.7 billion by the end of the third quarter of 2025 (3).<\/p>\n
The strategy paid off \u2014 Buffett\u2019s net worth grew by roughly $21 billion last year, despite a tumultuous market backdrop.<\/p>\n
Buffett isn\u2019t the only one quietly ditching stocks. Billionaire investor and co-founder of PayPal, Peter Thiel, sold roughly $100 million worth of Nvidia shares through his hedge fund, Thiel Macro, in the third quarter of 2025 (4).<\/p>\n
While Nvidia\u2019s stock price surged by nearly 35% in 2025, such moves by the ultra-wealthy spark concerns about a potential AI bubble (5).<\/p>\n
As U.S. equities grapple with uncertainties amid the ongoing tariff concerns and potential market overvaluation, cash and cash equivalents might help you hold onto your wealth in stormy weather.<\/p>\n
The richer investors get, the more likely they are to look beyond traditional investments. The Goldman Sachs survey revealed that nearly 4 in 10 people with $1 million to $5 million in investable assets have exposure to alternative investments. For those with more than $10 million, alternatives are even more common, with 80% holding them in some form.<\/p>\n
For those who don\u2019t want to deal with stock market volatility, there are accessible ways to invest in alternative assets and shield yourself from a potential crash.<\/p>\n
Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)<\/a>\u2019<\/p>\n One alternative option that can provide returns amidst economic turmoil is real estate.<\/p>\n Rental properties have long been a proven source of steady, passive income for investors. But managing properties costs time, effort and serious cash that many investors simply don\u2019t have.<\/p>\n With that said, that doesn\u2019t mean that there aren\u2019t options for those looking to tap into real estate as an investment vehicle without the hassle of property management.<\/p>\n One way to get into this market is by investing in shares of vacation homes or rental properties through Arrived<\/a>.<\/p>\n Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties<\/a>, earning a passive income stream without the extra work that comes with being a landlord.<\/p>\n To get started, simply browse through their selection of vetted properties, each picked for their appreciation and income-generating potential. Once you choose a property, you can start investing with as little as $100<\/a>, reaping any quarterly dividends.<\/p>\n But residential real estate isn\u2019t the only option if you\u2019re keen to diversify.<\/p>\n Accredited investors with capital on hand can invest in commercial real estate easily through First National Realty Partners (FNRP)<\/a>.<\/p>\n With FNRP you have access to institutional-quality, grocery-anchored commercial real estate investments<\/a> without the legwork of finding or managing deals on your own.<\/p>\n Thanks to triple net leases, you can invest in these properties without worrying about tenant costs cutting into potential returns. This means the tenants take care of property taxes, building insurance and common area maintenance \u2014 plus base rent.<\/p>\n With a minimum investment of $50,000, accredited investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart<\/a>, which provide essential goods to their communities. After all, even in a downturn, people still need somewhere to buy bread.<\/p>\n Mogul is a real estate investment platform offering fractional ownership in blue-chip rental properties<\/a>, which gives investors monthly rental income, real-time appreciation and tax benefits \u2014 without the need for a hefty down payment or 3 a.m. tenant calls.<\/p>\n Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide<\/a> for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.<\/p>\n Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually.<\/p>\n Offerings often sell out in under three hours<\/a>, with investments typically ranging between $15,000 and $40,000 per property.<\/p>\n Fine art tends to maintain its value during turbulent markets. According to a 2025 survey conducted by UBS, high-net-worth collectors are still maintaining their confidence in art \u2014 allocating roughly 20% of their wealth in the asset on average in 2025 (6).<\/p>\n Until recently, this world was off-limits to many investors. Not everyone has the time \u2014 or cash \u2014 to secure a beloved piece of contemporary art. Besides, much of the art world is locked behind a network of brokers, gallery owners and appraisers.<\/p>\n Now, with Masterworks<\/a>, you can buy fractional shares in multimillion-dollar works by icons like Banksy, Picasso and Basquiat. While art can be illiquid and typically requires a long-term hold, it offers unique portfolio diversification.<\/p>\n Masterworks has sold 25 artworks so far, yielding net annualized returns like 14.6%, 17.6%, and 17.8%.<\/p>\n Even better, if you\u2019re interested in art you can skip the waitlist<\/a> and go straight to investing.<\/p>\n Note that past performance is not indicative of future returns. Investing involves risk. See important Regulation A disclosures at Masterworks.com\/cd<\/a><\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n Goldman Sachs (1<\/a>); Forbes (2<\/a>); Bloomberg (3<\/a>); Reuters (4<\/a>); MarketWatch (5<\/a>); UBS (6<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"AlexVog \/ Envato Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content…\n","protected":false},"author":2,"featured_media":386195,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[28,187977,187976,155,28222,11925,725,2995,1168,1170,9632,724],"class_list":["post-386194","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-cash-and-cash-equivalents","tag-cash-equivalent","tag-dave-ramsey","tag-goldman-sachs","tag-high-net-worth-individuals","tag-investable-assets","tag-investor","tag-jeff-bezos","tag-real-estate","tag-real-estate-investments","tag-warren-buffett"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/386194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=386194"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/386194\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/386195"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=386194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=386194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=386194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}