Alternative Asset Investing: Real Estate, Farmland, and Timber

I have been the capital deployments among America’s wealth, and according to a recent U.S. Trust white paper, affluent Americans are looking towards more esoteric alternative asset investments in real estate, farmland, and timber:

Although 89% of respondents say their biggest investment gains have come from traditional stocks and bonds, more sophisticated strategies are present in the portfolios of the wealthy. Use of tangible assets — such as investment in real estate, farmland and timber properties — is substantial and increasing. Nearly half of the wealthy (48%) currently [editor’s note: this is 2016] own tangible assets, up from 41 percent in 2014.

U.S. Trust Insights on Wealth and Worth

That is quite the striking passage. In other words, this quote is wealthy, presumably very smart, somewhat older, Americans saying: “I made almost all of my money from x. I know x works. But I want to do y because it … Read the rest of this article!

Fayez Sarofim And What The Mainstream Financial Media Gets Wrong

If you flip through channels and see television programs that try to stereotype and chronicle the daily life of the wealthy, the focus will likely be on the assets that do not generate cash flow, and are generally illiquid. You see the wine collections, chilling in a specially created basement room that functions as a private lair. You see the fancy schmancy art purchased at auctions through Sotheby’s lining the hallway walls. You see the autographs of Joe Dimaggio, Paul McCartney and other assorted Beatles, and maybe a letter signed by President Kennedy somewhere in there.

The problem with these depictions is that they create the illusion that the wealth-building process is about art, collectibles, gold, rare wins, and other items that do not generate cash flow for their owners until the goods get sold. It corrupts the story of wealth-building by suggesting that it is wise to take money … Read the rest of this article!