Why 98% of the rich invest 5%+ in art:  Ever wonder why the ultra rich never worry about the falling stock market?  It’s because they invest a large chunk of their net worth in assets that can withstand market turmoil, like blue chip art.  According to UBS, 98% of ultra rich collectors invest at least 5% in art, with some investing 50% or more! Now you can join them, thanks to the fractional art investing platform Masterworks.

3 Unconventional Strategies Investors Can Consider In 2022

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.

With the highest inflation rate in 40 years, volatility rising, and the equity market nearing correction territory, where do some ultra-high net worth individuals invest their money? Some utilize “unconventional” investment strategies. 

The average person has no idea about some of these strategies even exist. However, many millionaires have used what I’m about to show you to compound their wealth, although they’re not 100% guaranteed to work for everyone.

1. Investing in assets the ultra-rich love

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Source: Wikimedia Commons

In 2005, New York art dealers Robert Simon and Alex Parrish bought the Salvator De Mundi painting by Leonardo Da Vinci. They paid approximately $10,000. And in 2017, a wealthy patron bought it for more than $450,000,000.

That’s a price appreciation of approximately 4,490,900% in just 12 years, making this portrait of Jesus the most expensive artwork ever sold.

Most people think you need to have millions in the bank to invest in fine art from famous artists. And while that may have previously been the case, it's no longer true.

Because thanks to an ingenious art investment platform called Masterworks, you can invest in million-dollar contemporary artworks alongside famous art collectors like Bill Gates, Jeff Bezos, and Oprah Winfrey.

And in case you’re wondering why 73% of ultra-high net worth Americans, surveyed by UBS, consider buying art to diversify their portfolio - there’s a very good reason.

On average, blue-chip artwork prices have outpaced the S&P 500 by 164% from 1995 to 2021. 

The beauty is, with Masterworks you can buy shares representing an investment in million-dollar artworks. That gives you the opportunity to invest in this overlooked asset, which has also seen investment from Brad Pitt, Beyoncé, and Leonardo DiCaprio for a fraction of the cost of purchasing the entire high-end painting.

With a recent $1 billion valuation, Masterworks is a unicorn art investment platform, so you will need to sign up.

The sign-up process is simple and you can request an invitation by clicking this link

Just keep in mind, they regularly sell out of offerings. Recently, Banksy’s painting “Exit Through The Gift Shop” sold out in 3 hours.

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2. Fire your boss and start a business

A study shows that 67% of millionaires are self-made.

And with so many opportunities online these days, it’s easier than ever to get started. Sometimes, all you need to get started is an internet connection, a few minutes of free time, and some initial capital.

Here are several of the many ideas that could help you make your first million.

  • Business Partner. There are businesses looking for someone experienced to help them grow their company as a partner, who could get a percent of the company. This could pay exponentially more than a flat salary. So if you fit that bill, then this might be a great fit for you. 
  • eCommerce. Many entrepreneurs make their first million drop shipping or build an ecommerce site on Shopify, Wordpress, or Magento. You only need to sell a $200 product to 5,000 people in order to make $1 million, or sell a $2,000 product to 500 people. There are ways to get started with very little money and to make things easy, there are a ton of free or low cost integrations.

3. Real Estate has been rising in popularity

One of the wealthiest Americans in history, Andrew Carnegie, said: "more money has been made in real estate than in all industrial investments combined." And due to recent events, real estate has been rising in popularity.

The key with real estate is you could leverage your investment based on the property value. So you don’t need to have the whole capital upfront to invest.

And with interest rates at record lows and a shortage of rental properties on the market, it might be a good time to get started.

Millionaires often have large real estate portfolios. And once you’ve got several properties under your belt, you can likely leverage the equity in your properties to build an empire.

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.

Featured image sourced from Unsplash

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