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Ultra Rich Invest Far More Aggressively Than Other Wealthy Individuals
This entry was posted on 11/29/2007 1:02 PM and is filed under wealth marketing.
Chicago, Nov. 28, 2007 /PRNewswire/ — The wealthiest Americans aren't afraid to roll the dice.
A full 41% of those with a net worth of $25 million or more, not
including primary residence (NIPR), describe themselves as "aggressive"
or "most aggressive" in their investing, according to a new report from
Spectrem Group, "The $25 Million Plus Investor," released today. Those
who identify themselves as "aggressive" (33%) are willing to place a
significant portion of their investments at risk, while those who call
themselves "most aggressive" (8%) are willing to expose all of their
investments to risk.
In contrast, wealthy individuals in the relatively lower net-worth
bracket of $5 million and up, NIPR, are far more cautious, with only
24% identifying themselves as "aggressive" or "most aggressive."
"Aggressive" investors account for 20%, while the "most aggressive"
investors stand at 4%.
Meanwhile, just 6% of the $25 million-plus set consider themselves
"conservative" investors, compared with 9% of those with a net worth of
$5 million or more.
"Even in the face of intense financial market turmoil, investors
with the most to lose are willing to roll the dice with risky
investments. Two out of five of those worth $25 million or more are
aggressive investors — with a good portion of those calling themselves
'most aggressive.' Meanwhile, just 6% take a conservative approach and
seek stable, risk-free returns. This raises eyebrows given that the $25
million households have about two-thirds of their wealth tied up in
stocks, alternatives and other investable assets," said George H.
Walper, Jr., President of Spectrem Group and co-author with Spectrem
Managing Director Catherine S. McBreen of the upcoming book "Get Rich,
Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's
Richest Families" (Portfolio, January 2008).
Individuals with a net worth of $25 million or more hold 65% of
their total assets in investable assets such as individual stocks,
mutual funds, managed accounts and alternatives. The alternatives
include hedge funds, private placements, private equity, venture
capital, commodities and REITs.
The Spectrem report, "The $25 Million Plus Investor," is based on a
survey of the financial decision-makers in 101 households with a net
worth of $25 million or more conducted in August 2007. The data have a
margin of error of plus or minus 9.7 percentage points.
Those interested in purchasing the Spectrem report, "The $25 Million
Plus Investor," should contact Spectrem Group at 641 W. Lake Street,
Suite 402, Chicago, IL 60661, (312) 382-8284.
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