One question that might recur in the mind of the average poor man might be; ‘Why do the rich get richer and the poor do get poorer? Perhaps there are certain things the rich folks know that the poor do not. There are certain line of investments that is exclusively reserved for the rich and multi-millionaires. The fact that this kind of investments is embarked by the rich doesn’t mean that they are exclusively reserved for the rich alone, or that there is a barrier or law set by the government to stop the poor or even the middle class from investing.
It is simply because the amount of money required to invest in this type of businesses is in the range of millions and in some cases billions (all in dollars). Being rich means that you would have cut your teeth with little business deals and grown your wealth overtime. It also means that you would have inherited your wealth from your parents or a family member. Truly no one dabbles into large business investments that require millions to invest in without first trying out some other little investments. Let us quickly look into the 10 things that the rich invest in that the poor and middle class do not:
10 Things That the Rich Invest In that the Poor and Middle Class Do Not
To be considered an accredited investor, you should meet certain criteria set by different countries’ securities laws. The requirement could range from having a net worth of one million dollars to earning over two hundred thousand dollars annually.
Being an accredited investor would give you the privilege to invest in high risk investments like hedge funds, seed money, private placements, angel investment networks and limited partnership; of course this form investment comes with high rate of return on investment (ROI).
Bottom line is that being an accredited investor gives you the legal rights to invest in diversified investment portfolios which non accredited investors don’t find attractive. The saying “The rich keeps getting richer…” most likely came into being as a result of the rate at which accredited investors doubled their income in a short space of time. Let us quickly look into the 10 things that the rich invest in that the poor and middle class do not:
10 Best Investment Opportunities for Accredited Investors
1. Hedge Funds Investment
There are countless numbers of business people with lots of money but cannot seem to really find a place to invest in. The essence of hedge funds is to help various business people or accredited investors to pool their cash together, so that an accredited firm can help them manage such funds and ensure that they get good returns on their investment. This is a good form of investment for accredited investors because it has flexible options; you can withdraw or add to your investment. Most accredited investors would rather choose hedge funds managers to help them manage their investment portfolios.
2. Private Equity Investment
This form of investment could mean buying a company or buying a larger chunk of the shares of a company. There are companies out there not making profits simply because it is being poorly managed; investing or completely buying such company as an accredited investor would help you over haul the management team and put things in place that will position the company for better growth and profitability.
3. Venture Capital Investment
Loads of startup companies out there have the potentials to grow, expand and make huge returns on investment, but their growth and profitability is limited because the owners might not have the required money to invest into it. As an accredited investor, buying into start-ups is easier and cheaper compared to buying into an established company. Risks with start-ups are high that is why proper investigation and risk assessments should be conducted before investing.
The Telecommunication industry is still growing and expanding to new frontiers. This is one industry whose investment requires large sum of money and good news is that the risk that comes with it is low compared to some other industries. As an accredited investor, there are loads of telecommunication companies that you could invest in without being worried because you can be rest assured that your investment would be safe.
5. Oil and Gas
The amount of money required in investing in the oil and gas industry is not the kind of money that can easily be raised. It requires a lot of money to become an investor in the oil and gas industry that is why as an accredited investor, you should consider investing here if you don’t have an investment portfolio in this industry. You could invest in oil exploration and production, oil servicing and liquefied gas et al. The return on investment in this industry seems to be one of the highest compared to other industry.
6. Real Estate
Investing in real estate globally is one of the safest forms of investment to venture into. Most accredited investors that invest in real estate goes beyond developing large units of housing in their local countries to building estates all around the world. The need for housing will continue to be on the increase which is one of the reasons why as an accredited investor you need to look towards owning an investment portfolio in this industry.
Constructing railways, roads, refineries, airports, seaports, stadiums, long bridges, et al, requires huge cash and such projects are given to those who meet certain financial requirements. As an accredited investor; investing in a major construction company would most often than not guarantee you good returns on your investment. Experts advice that before you invest in this type of industry, make sure you hire professionals to help do a thorough investigation.
It’s often said that as long as commerce exist amongst different nations of the world, there will always be business for shipping companies. Except for lighter cargos that can be handled by aircrafts, shipping still remains the most reliable and convenient way to ship goods all over the world. The fact is that there is no industry in the world that can be compared to the shipping industry when it comes to their effect on global economy.
Investing in this industry would mean that you will continue to be in business as long as your shipping company is properly managed. There are risks involved in the shipping business, and that is why major players in this industry are accredited investors. They have all it takes to shoulder the risks that are prevalent in this industry.
Investing in the aviation industry requires huge sum of money. The money to buy aircrafts, obtain the required license and for the maintenance of the aircrafts. As an accredited investor, this is one area to invest in because non accredited investors can hardly survive this industry because of the high risk despite this is despite the fact that it gives good return on investment in the long run.
10. Automobile Production
Most giant automobile companies are heading towards Africa to establish their production plants. This is no wonder that the market is opening up for investors to come in everyday. As an accredited investor, you can consider investing in this industry. Be sure that you have you done your research properly before choosing the company to invest in.
Other Investment Products the Rich Invest in
- Private Placements
- Corporate Buyouts / Takeovers
- Large Real Estate Syndication
- Government Asset Privatization
There you have it! The best top ten investment opportunities available to accredited investor. If you are an accredited investor, go through the opportunities one after the other, and choose the one that appeals to you the most to start with. Remember, nothing beats investing your money in a very promising platform that could yield you folds of dividends.