Here you have a detailed analysis of 5 investment strategies used by millionaires and few know. These tactics have been used by successful investors to accumulate wealth in a sustainable way.
1. Investment in Private Enterprises and Risk Capital (Private Equity & Venture Capital)
What is Private Equity and Venture Capital?
Millionaires usually invest in startups and private companies through venture capital funds (Venture Capital) or acquiring shares in companies with growth potential.
Real example:
Jeff Bezos invested in Google in 1998 with only $250,000. Today that investment was worth more $3,000 million.
How to implement this strategy:
- Investigates startups through platforms like AngelList or Crowdcube.
- Invest in venture capital funds that diversify into several emerging companies.
- Evaluate the equipment and technology of the company before investing.
Advantages and Risks:
♪♪ High profitability potential (you can multiply your investment by 10 or more).
♪ Low liquidity (you can’t easily sell your share).
2. Investment in Tangible Assets: Art, Wines and Luxury Watches
Why do millionaires invest in these assets?
Alternative investments such as art, luxury watches and fine wines offer low correlation with traditional markets and can act as shelters in times of crisis.
Real example:
- In 2017, a painting by Leonardo Da Vinci, Salvator MundiIt was sold for $450 millionhaving been acquired in 2005 alone $10,000.
How to implement this strategy:
- Invests in art through platforms like Masterworks.
- Buy brands watches like Rolex or Patek PhilippeThey increase value over time.
- Store fine wines that are revalued with age (e.g.: Château Lafite Rothschild).
Advantages and Risks:
♪♪ Luxury assets maintain their long-term value.
♪ Illegal and specialized marketIt requires deep knowledge.
3. Use of Debt for Investments (Debt Leveraging)
How do millionaires use debt to become richer?
Unlike most people, the rich use debt strategically to finance investments in goods, companies and financial markets.
Real example:
- Donald Trump it has used bank financing to acquire raw goods without using its own money, generating millions in surplus value.
How to implement this strategy:
- Use low interest mortgages to buy properties and rent them.
- Requests loans to invest in business with positive cash flow.
- Use brokerage margin to enlarge pouch positions (with caution).
Advantages and Risks:
♪♪ Multiply your investment capacity without the need for large capitals.
♪ Increased financial risk if investments do not generate sufficient returns.
4. InversiÃ3n en Commodities y Metales Preciosos (Oro, Plata, Litio and Copper)
Why do millionaires invest in commodities?
Precious metals and raw materials are defensive assets that protect capital against inflation and econic crises.
Real example:
- During the crisis of 2008, gold came from $700 to $1,900 by ounce, providing great protection to investors.
How to implement this strategy:
- Buy physical gold or invest in ETFs as SPDR Gold Shares (GLD).
- Consider lithium mining actions, as Albemarle (ALB)For the boom of electric cars.
- Invest in copper, which has high demand in infrastructure and technology.
Advantages and Risks:
♪♪ Protection against inflation and devaluation of money.
♪ They do not generate passive income, only appreciation of value.
5. Creation of Passive Income Sources with Dividends and Rules
How do millionaires generate passive income?
The rich look for investments that generate recurring income without having to work actively for them.
Real example:
- Warren Buffett invests in companies like Coca-Cola, that generate him millions in annual dividends.
- Michael Jackson bought songs rights from The Beatles, generating billionaire gifts.
How to implement this strategy:
- Invest in shares of dividends Like Johnson & Johnson (JNJ) or Procter & Gamble (PG).
- Creates digital content (ebooks, courses, music) and generates gifts.
- Purchase rental properties for constant income.
Advantages and Risks:
♪♪ Constant cash flowideal for investment.
♪ Requires initial time or capital to settle.
Conclusion: How to Apply These Strategies in Your Life
Millionaires do not depend on a single investment strategy, but combine several to maximize their wealth and minimize risks. Here is an action plan to apply these principles:
1ï ̧⣠Diversify between traditional and alternative assets.
2ï ̧⣠Seize the debt stratily to increase your investment capacity.
3ï ̧⣠Focus on passive incomeLike dividends and royalties.
4    £ Considers illusory investments with high revaluation potential, such as art or private companies.
5ï ̧⣠Invest in commodities as protection against economic crises.
If you implement these strategies with discipline, you could start building a portfolio like that of millionaires.
