If there's one thing Heather Loomis Tighe has learned in more than 20 years of managing the money of the ultra-high net worth, it's that there is no single portfolio allocation that all billionaires use. . Mr. Ty, who has traded stocks, managed fixed income portfolios and served as CIO, is now a family advisor and partner in his venture capital office in his Jackson, Wyoming-based office. Her guidance and expertise comes from her mindset of not only building, but maintaining your wealth. Concentration of risk for deep expertise. “She looks at both sides of the balance sheet,” she says. “We're not only looking at how we invest, we're also concerned about keeping that money. Investing like the 1% is hard. If you look at the portfolios of the top 1% of investors, they're all amazing. Still, even with such wide variation between portfolios, there are valuable constants that can be gleaned from the nation's wealthiest investors, Tai says. Her best advice for anyone looking to apply her client expertise to their own much smaller honeypot is to rely on these six principles of managing your investments, preserving and building wealth. It is to do.
become optimistic
“What the most affluent people I've worked with over the years have in common is that they are inherently optimistic people,” says Tai. “This doesn't mean they turn a blind eye to the risks, but they believe that the benefits will outweigh the risks in the long run. They're excited about the future, and others ” This ends up erring on the side of ingenuity, entrepreneurship, and pure hard work. They believe that people who know how to get the job done, even under pressure, will adapt and evolve over time to meet market demands, grow and thrive. “If you think of the stock market as a bunch of people trying to make businesses work, they believe in the power of business leaders and CEOs to make businesses work,” Tai says. “In many cases, they have been in such positions before and have made it work. This gives this class of investors tremendous staying power to weather the storm. can.”
show confidence
“I would venture to say that the top 1 percent of investors have the highest level of confidence I've ever seen in my life,” Tai says. “That doesn't mean they lack humility.” Rather, she says, confidence comes in the form of confidence and the ability to know what you don't know. The richest people Tai knows didn't become wealthy because they operated in a vacuum, she said. “They listen to a wide range of people and ask questions.” This also influences how they operate as business owners. They trust in their ability to solve problems and rely on other smart and capable people in their corner to support them and their plans. “The important thing is that they run their businesses and investment portfolios not for the love of money, but for the love of the game,” she says. “As a result, they know deep down that if they lose everything, they can start again. They invest and live their lives without fear of losing. In the long run, The market is a playground for confident investors. It rewards them more than anyone else.”
become an expert
Tai makes it clear that her clients are often experts in a particular field or two. That doesn't mean they're professional investors, she says. “They are true subject matter experts and very hands-on in their field,” Tai says. “They typically own or operate companies or have significant investments in their field of expertise.” So they own this field, whether it's a hotel conglomerate, a high-tech company, an oil well, or a fashion brand. can be framed as the core of their wealth and make big, calculated bets in this area. In both cases, their mastery of internal and external spaces allows them to build wealth and gain insights that others may not have. These insights are also valuable to the rest of the market, Tai says. For example, supply chain dynamics influence decisions across global investments, but trends in global oil consumption and production can be felt by certain people before others, and It can influence other macro and micro decisions. she says: “By combining that with an open mind and talking to others in different industries, you can glean insights.”
Be frugal
“I've never met a billionaire who would happily pay an ATM fee or spend $35 on a hamburger without flinching,” Tai says. “The 1 percent watches out the back door. If you spend what you earn, or more than you earn, you won't be able to take full advantage of the power of compound interest.” It's about cutting back and letting your money work for you, she says. Tai jokes that this strategy could be interpreted as “save like a pessimist.” Invest like an optimist. She said that while the 1 percent generally enjoy the process of making money, she also knows that money can be seductive. She says good investors will put off making luxury purchases in the name of respecting the value of their money and the potential for future growth. “If your investment portfolio returns 8% a year, after taxes, she won't get 8%; it's closer to half that,” Tai says, pointing to the impact of inflation. “And if you want your money to work for you, you want to keep most of it invested.”
think at right angles
Mr. Tai has long made it a habit to show up to client meetings prepared for anything. “Over the course of 20 years, I've noticed very few questions about the Fed dot plot or the expected P/E ratios of various sectors,” Tai says. “They were about issues that are rarely talked about in the financial press or on TV: the future of water rights, changing jet stream patterns, niche private investment, discussions about the future of the reserve currency.” They were financial advisors. Instead of thinking like that, being an entrepreneur means thinking outside the box, solving problems that others haven't been able to solve, or starting companies that didn't exist before. Her clients are interested in understanding how the world works today and what factors and issues will influence how the world works in the future. Being able to explore the answers to these questions has enabled our clients to anticipate opportunities.
seize the chance
When markets are in turmoil, the wealthiest investors step into the spotlight and truly shine. “The top 1% of investors are not afraid to become salmon,” Tai says. “These investors are on the sidelines, and if they know they can buy something at an attractive price, they can survive another 10-20% drop to the bottom, or the initial 10-20% rally. Don't worry if you miss out.'' This principle applies most to their particular field of expertise. If they know a particular characteristic, type of technology, business or sector, they have observed and studied it and are therefore very familiar with the patterns that emerge in the market over time. Endlessly. “They have the confidence in their heads to say, 'Let's move on here because everyone else is leaving,'” she says. “Throughout history, some of the greatest innovations have occurred in times of crisis.”
