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Author: Chris MacDonald

  • Are you rich enough to join the top 1%? Here’s the net worth you need to rank among Canada’s wealthiest — plus a few strategies to build that first-class portfolio

    Are you rich enough to join the top 1%? Here’s the net worth you need to rank among Canada’s wealthiest — plus a few strategies to build that first-class portfolio

    To be a top 1% earner in Canada, you need to make at least $586,900, according to data released in 2024 by Statistics Canada.

    The wealthiest households accounted for almost two-thirds (64.8%) of Canada’s total net worth in the fourth quarter of 2024, with an average of $3.3 million in earnings per household. For contrast, the least wealthy earned an average of $84,600 per year, according to Statistics Canada.

    Whatever the size of your portfolio, there are potential benefits to following the wealth-building strategies of the rich. Here’s how you can work to grow your wealth like the top 1%.

    Diversify like the 1%

    While stock portfolios make up the bulk of asset holdings among high net worth households, real estate and alternative assets have grown in importance and popularity.

    Turns out ultra-high net-worth individuals and households generally have some form of alternative investment in their portfolio.

    Fine art is one alternative investment that consistently outperforms the stock market in the long run. According to a report in Fortune Magazine, contemporary art outperformed the S&P 500 with a compound annual growth rate of 12.6% between 1995 and 2022.

    In the past, fine art investments were reserved for the top 1%, but that’s no longer the case.

    If you’re looking to diversify your portfolio in the fine art and collectibles market, Masterworks is a platform worth considering.

    Masterworks is a top platform for retail and accredited investors to purchase fractional shares of artwork by iconic artists like Banksy and Basquiat.

    Masterworks’ team scours the art market for the best deals, buys them at a discount, and offers these shares to members.

    Their platform is easy to use, and the Masterworks team has been working since 2019 to realize representative annualized net returns like +17.6%, +17.8%, and +21.5% (among assets held for longer than one year). See important Regulation A disclosures at Masterworks.com/cd

    Diversify your portfolio today with a piece of fine art.

    Real estate as a wealth-building tool

    Another important asset that HNW investors consider a staple is real estate.

    According to Knight Frank’s global survey of over 600 wealth managers that manage nearly US$3 trillion in assets, primary and secondary homes account for around 26% of the overall net worth of ultra-high net worth individuals in North America.

    It’s clear that investors who own real estate tend to accumulate significantly larger portfolio earnings, over time, and this leads to larger and more substantive net worth gains.

    While buying a home is one strategy, not everyone is comfortable with becoming a homeowner, a landlord or tying up significant sums of money in one or two properties.

    That doesn’t mean you can’t invest in real estate. While accredited investors can find private equity crowdfunding platforms that specialize in real estate, retail investors can gain market exposure to real estate earnings using Real Estate Investment Trusts (REITs).

    REITs own and operate a range of real estate properties, including office buildings, apartments, hospitals and malls. Investors earn returns through dividends and potential price appreciation of the portfolio of properties — but you aren’t forced to deposit large sums as a down payment.

    Instead, you buy and sell the shares of REITs — making it an attractive option for those who want exposure to the lucrative real estate market, without the hassle of property ownership.

    You can buy and sell REITs on the stock market through a self-directed online trading platform like CIBC Investor’s Edge, where you’ll pay low commissions on trades and have no or minimal account maintenance charges, depending on the size of your portfolio.

    Get 100 free online equity trades when you open a CIBC Investor’s Edge account using promo code EDGE100†. Offer ends September 30, 2025.

    How to find the right asset mix

    It can be tricky to figure out the right mix of investment types at your individual income level, as variances in net worth and financial goals make generalized advice difficult to follow.

    If you’re looking for peace of mind, hiring a financial advisor can help you to feel good about your money moves.

    Sources

    1. Statistics Canada: High income tax filers in Canada

    2. Statistics Canada: Distributions of household economic accounts for income, consumption, saving and wealth of Canadian households, fourth quarter 2024

    3. Knight Frank: The Wealth Report

    4. Fortune Magazine: Millennials are discovering this recession-resistant asset of the super-rich—and some indexes show it’s outperforming the S&P 500

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Are you rich enough to join the top 1%? Here’s the net worth you need to rank among Canada’s wealthiest — plus a few strategies to build that first-class portfolio

    Are you rich enough to join the top 1%? Here’s the net worth you need to rank among Canada’s wealthiest — plus a few strategies to build that first-class portfolio

    To be a top 1% earner in Canada, you need to make at least $586,900, according to data released in 2024 by Statistics Canada.

    The wealthiest households accounted for almost two-thirds (64.8%) of Canada’s total net worth in the fourth quarter of 2024, with an average of $3.3 million in earnings per household. For contrast, the least wealthy earned an average of $84,600 per year, according to Statistics Canada.

    Whatever the size of your portfolio, there are potential benefits to following the wealth-building strategies of the rich. Here’s how you can work to grow your wealth like the top 1%.

    Diversify like the 1%

    While stock portfolios make up the bulk of asset holdings among high net worth households, real estate and alternative assets have grown in importance and popularity.

    Turns out ultra-high net-worth individuals and households generally have some form of alternative investment in their portfolio.

    Fine art is one alternative investment that consistently outperforms the stock market in the long run. According to a report in Fortune Magazine, contemporary art outperformed the S&P 500 with a compound annual growth rate of 12.6% between 1995 and 2022.

    In the past, fine art investments were reserved for the top 1%, but that’s no longer the case.

    If you’re looking to diversify your portfolio in the fine art and collectibles market, Masterworks is a platform worth considering.

    Masterworks is a top platform for retail and accredited investors to purchase fractional shares of artwork by iconic artists like Banksy and Basquiat.

    Masterworks’ team scours the art market for the best deals, buys them at a discount, and offers these shares to members.

    Their platform is easy to use, and the Masterworks team has been working since 2019 to realize representative annualized net returns like +17.6%, +17.8%, and +21.5% (among assets held for longer than one year). See important Regulation A disclosures at Masterworks.com/cd

    Diversify your portfolio today with a piece of fine art.

    Real estate as a wealth-building tool

    Another important asset that HNW investors consider a staple is real estate.

    According to Knight Frank’s global survey of over 600 wealth managers that manage nearly US$3 trillion in assets, primary and secondary homes account for around 26% of the overall net worth of ultra-high net worth individuals in North America.

    It’s clear that investors who own real estate tend to accumulate significantly larger portfolio earnings, over time, and this leads to larger and more substantive net worth gains.

    While buying a home is one strategy, not everyone is comfortable with becoming a homeowner, a landlord or tying up significant sums of money in one or two properties.

    That doesn’t mean you can’t invest in real estate. While accredited investors can find private equity crowdfunding platforms that specialize in real estate, retail investors can gain market exposure to real estate earnings using Real Estate Investment Trusts (REITs).

    REITs own and operate a range of real estate properties, including office buildings, apartments, hospitals and malls. Investors earn returns through dividends and potential price appreciation of the portfolio of properties — but you aren’t forced to deposit large sums as a down payment.

    Instead, you buy and sell the shares of REITs — making it an attractive option for those who want exposure to the lucrative real estate market, without the hassle of property ownership.

    You can buy and sell REITs on the stock market through a self-directed online trading platform like CIBC Investor’s Edge, where you’ll pay low commissions on trades and have no or minimal account maintenance charges, depending on the size of your portfolio.

    Get 100 free online equity trades when you open a CIBC Investor’s Edge account using promo code EDGE100†. Offer ends September 30, 2025.

    How to find the right asset mix

    It can be tricky to figure out the right mix of investment types at your individual income level, as variances in net worth and financial goals make generalized advice difficult to follow.

    If you’re looking for peace of mind, hiring a financial advisor can help you to feel good about your money moves.

    Sources

    1. Statistics Canada: High income tax filers in Canada

    2. Statistics Canada: Distributions of household economic accounts for income, consumption, saving and wealth of Canadian households, fourth quarter 2024

    3. Knight Frank: The Wealth Report

    4. Fortune Magazine: Millennials are discovering this recession-resistant asset of the super-rich—and some indexes show it’s outperforming the S&P 500

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Are you rich enough to join the top 1%? Here’s the net worth you need to rank among Canada’s wealthiest — plus a few strategies to build that first-class portfolio

    Are you rich enough to join the top 1%? Here’s the net worth you need to rank among Canada’s wealthiest — plus a few strategies to build that first-class portfolio

    To be a top 1% earner in Canada, you need to make at least $586,900, according to data released in 2024 by Statistics Canada.

    The wealthiest households accounted for almost two-thirds (64.8%) of Canada’s total net worth in the fourth quarter of 2024, with an average of $3.3 million in earnings per household. For contrast, the least wealthy earned an average of $84,600 per year, according to Statistics Canada.

    Whatever the size of your portfolio, there are potential benefits to following the wealth-building strategies of the rich. Here’s how you can work to grow your wealth like the top 1%.

    Diversify like the 1%

    While stock portfolios make up the bulk of asset holdings among high net worth households, real estate and alternative assets have grown in importance and popularity.

    Turns out ultra-high net-worth individuals and households generally have some form of alternative investment in their portfolio.

    Fine art is one alternative investment that consistently outperforms the stock market in the long run. According to a report in Fortune Magazine, contemporary art outperformed the S&P 500 with a compound annual growth rate of 12.6% between 1995 and 2022.

    In the past, fine art investments were reserved for the top 1%, but that’s no longer the case.

    If you’re looking to diversify your portfolio in the fine art and collectibles market, Masterworks is a platform worth considering.

    Masterworks is a top platform for retail and accredited investors to purchase fractional shares of artwork by iconic artists like Banksy and Basquiat.

    Masterworks’ team scours the art market for the best deals, buys them at a discount, and offers these shares to members.

    Their platform is easy to use, and the Masterworks team has been working since 2019 to realize representative annualized net returns like +17.6%, +17.8%, and +21.5% (among assets held for longer than one year). See important Regulation A disclosures at Masterworks.com/cd

    Diversify your portfolio today with a piece of fine art.

    Real estate as a wealth-building tool

    Another important asset that HNW investors consider a staple is real estate.

    According to Knight Frank’s global survey of over 600 wealth managers that manage nearly US$3 trillion in assets, primary and secondary homes account for around 26% of the overall net worth of ultra-high net worth individuals in North America.

    It’s clear that investors who own real estate tend to accumulate significantly larger portfolio earnings, over time, and this leads to larger and more substantive net worth gains.

    While buying a home is one strategy, not everyone is comfortable with becoming a homeowner, a landlord or tying up significant sums of money in one or two properties.

    That doesn’t mean you can’t invest in real estate. While accredited investors can find private equity crowdfunding platforms that specialize in real estate, retail investors can gain market exposure to real estate earnings using Real Estate Investment Trusts (REITs).

    REITs own and operate a range of real estate properties, including office buildings, apartments, hospitals and malls. Investors earn returns through dividends and potential price appreciation of the portfolio of properties — but you aren’t forced to deposit large sums as a down payment.

    Instead, you buy and sell the shares of REITs — making it an attractive option for those who want exposure to the lucrative real estate market, without the hassle of property ownership.

    You can buy and sell REITs on the stock market through a self-directed online trading platform like CIBC Investor’s Edge, where you’ll pay low commissions on trades and have no or minimal account maintenance charges, depending on the size of your portfolio.

    Get 100 free online equity trades when you open a CIBC Investor’s Edge account using promo code EDGE100†. Offer ends September 30, 2025.

    How to find the right asset mix

    It can be tricky to figure out the right mix of investment types at your individual income level, as variances in net worth and financial goals make generalized advice difficult to follow.

    If you’re looking for peace of mind, hiring a financial advisor can help you to feel good about your money moves.

    Sources

    1. Statistics Canada: High income tax filers in Canada

    2. Statistics Canada: Distributions of household economic accounts for income, consumption, saving and wealth of Canadian households, fourth quarter 2024

    3. Knight Frank: The Wealth Report

    4. Fortune Magazine: Millennials are discovering this recession-resistant asset of the super-rich—and some indexes show it’s outperforming the S&P 500

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Are you rich enough to join the top 1%? Here’s the net worth you need to rank among Canada’s wealthiest — plus a few strategies to build that first-class portfolio

    Are you rich enough to join the top 1%? Here’s the net worth you need to rank among Canada’s wealthiest — plus a few strategies to build that first-class portfolio

    To be a top 1% earner in Canada, you need to make at least $586,900, according to data released in 2024 by Statistics Canada.

    The wealthiest households accounted for almost two-thirds (64.8%) of Canada’s total net worth in the fourth quarter of 2024, with an average of $3.3 million in earnings per household. For contrast, the least wealthy earned an average of $84,600 per year, according to Statistics Canada.

    Whatever the size of your portfolio, there are potential benefits to following the wealth-building strategies of the rich. Here’s how you can work to grow your wealth like the top 1%.

    Diversify like the 1%

    While stock portfolios make up the bulk of asset holdings among high net worth households, real estate and alternative assets have grown in importance and popularity.

    Turns out ultra-high net-worth individuals and households generally have some form of alternative investment in their portfolio.

    Fine art is one alternative investment that consistently outperforms the stock market in the long run. According to a report in Fortune Magazine, contemporary art outperformed the S&P 500 with a compound annual growth rate of 12.6% between 1995 and 2022.

    In the past, fine art investments were reserved for the top 1%, but that’s no longer the case.

    If you’re looking to diversify your portfolio in the fine art and collectibles market, Masterworks is a platform worth considering.

    Masterworks is a top platform for retail and accredited investors to purchase fractional shares of artwork by iconic artists like Banksy and Basquiat.

    Masterworks’ team scours the art market for the best deals, buys them at a discount, and offers these shares to members.

    Their platform is easy to use, and the Masterworks team has been working since 2019 to realize representative annualized net returns like +17.6%, +17.8%, and +21.5% (among assets held for longer than one year). See important Regulation A disclosures at Masterworks.com/cd

    Diversify your portfolio today with a piece of fine art.

    Real estate as a wealth-building tool

    Another important asset that HNW investors consider a staple is real estate.

    According to Knight Frank’s global survey of over 600 wealth managers that manage nearly US$3 trillion in assets, primary and secondary homes account for around 26% of the overall net worth of ultra-high net worth individuals in North America.

    It’s clear that investors who own real estate tend to accumulate significantly larger portfolio earnings, over time, and this leads to larger and more substantive net worth gains.

    While buying a home is one strategy, not everyone is comfortable with becoming a homeowner, a landlord or tying up significant sums of money in one or two properties.

    That doesn’t mean you can’t invest in real estate. While accredited investors can find private equity crowdfunding platforms that specialize in real estate, retail investors can gain market exposure to real estate earnings using Real Estate Investment Trusts (REITs).

    REITs own and operate a range of real estate properties, including office buildings, apartments, hospitals and malls. Investors earn returns through dividends and potential price appreciation of the portfolio of properties — but you aren’t forced to deposit large sums as a down payment.

    Instead, you buy and sell the shares of REITs — making it an attractive option for those who want exposure to the lucrative real estate market, without the hassle of property ownership.

    You can buy and sell REITs on the stock market through a self-directed online trading platform like CIBC Investor’s Edge, where you’ll pay low commissions on trades and have no or minimal account maintenance charges, depending on the size of your portfolio.

    Get 100 free online equity trades when you open a CIBC Investor’s Edge account using promo code EDGE100†. Offer ends September 30, 2025.

    How to find the right asset mix

    It can be tricky to figure out the right mix of investment types at your individual income level, as variances in net worth and financial goals make generalized advice difficult to follow.

    If you’re looking for peace of mind, hiring a financial advisor can help you to feel good about your money moves.

    Sources

    1. Statistics Canada: High income tax filers in Canada

    2. Statistics Canada: Distributions of household economic accounts for income, consumption, saving and wealth of Canadian households, fourth quarter 2024

    3. Knight Frank: The Wealth Report

    4. Fortune Magazine: Millennials are discovering this recession-resistant asset of the super-rich—and some indexes show it’s outperforming the S&P 500

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Are you rich enough to join the top 1%? Here’s the net worth you need to rank among Canada’s wealthiest — plus a few strategies to build that first-class portfolio

    Are you rich enough to join the top 1%? Here’s the net worth you need to rank among Canada’s wealthiest — plus a few strategies to build that first-class portfolio

    To be a top 1% earner in Canada, you need to make at least $586,900, according to data released in 2024 by Statistics Canada.

    The wealthiest households accounted for almost two-thirds (64.8%) of Canada’s total net worth in the fourth quarter of 2024, with an average of $3.3 million in earnings per household. For contrast, the least wealthy earned an average of $84,600 per year, according to Statistics Canada.

    Whatever the size of your portfolio, there are potential benefits to following the wealth-building strategies of the rich. Here’s how you can work to grow your wealth like the top 1%.

    Diversify like the 1%

    While stock portfolios make up the bulk of asset holdings among high net worth households, real estate and alternative assets have grown in importance and popularity.

    Turns out ultra-high net-worth individuals and households generally have some form of alternative investment in their portfolio.

    Fine art is one alternative investment that consistently outperforms the stock market in the long run. According to a report in Fortune Magazine, contemporary art outperformed the S&P 500 with a compound annual growth rate of 12.6% between 1995 and 2022.

    In the past, fine art investments were reserved for the top 1%, but that’s no longer the case.

    If you’re looking to diversify your portfolio in the fine art and collectibles market, Masterworks is a platform worth considering.

    Masterworks is a top platform for retail and accredited investors to purchase fractional shares of artwork by iconic artists like Banksy and Basquiat.

    Masterworks’ team scours the art market for the best deals, buys them at a discount, and offers these shares to members.

    Their platform is easy to use, and the Masterworks team has been working since 2019 to realize representative annualized net returns like +17.6%, +17.8%, and +21.5% (among assets held for longer than one year). See important Regulation A disclosures at Masterworks.com/cd

    Diversify your portfolio today with a piece of fine art.

    Real estate as a wealth-building tool

    Another important asset that HNW investors consider a staple is real estate.

    According to Knight Frank’s global survey of over 600 wealth managers that manage nearly US$3 trillion in assets, primary and secondary homes account for around 26% of the overall net worth of ultra-high net worth individuals in North America.

    It’s clear that investors who own real estate tend to accumulate significantly larger portfolio earnings, over time, and this leads to larger and more substantive net worth gains.

    While buying a home is one strategy, not everyone is comfortable with becoming a homeowner, a landlord or tying up significant sums of money in one or two properties.

    That doesn’t mean you can’t invest in real estate. While accredited investors can find private equity crowdfunding platforms that specialize in real estate, retail investors can gain market exposure to real estate earnings using Real Estate Investment Trusts (REITs).

    REITs own and operate a range of real estate properties, including office buildings, apartments, hospitals and malls. Investors earn returns through dividends and potential price appreciation of the portfolio of properties — but you aren’t forced to deposit large sums as a down payment.

    Instead, you buy and sell the shares of REITs — making it an attractive option for those who want exposure to the lucrative real estate market, without the hassle of property ownership.

    You can buy and sell REITs on the stock market through a self-directed online trading platform like CIBC Investor’s Edge, where you’ll pay low commissions on trades and have no or minimal account maintenance charges, depending on the size of your portfolio.

    Get 100 free online equity trades when you open a CIBC Investor’s Edge account using promo code EDGE100†. Offer ends September 30, 2025.

    How to find the right asset mix

    It can be tricky to figure out the right mix of investment types at your individual income level, as variances in net worth and financial goals make generalized advice difficult to follow.

    If you’re looking for peace of mind, hiring a financial advisor can help you to feel good about your money moves.

    Sources

    1. Statistics Canada: High income tax filers in Canada

    2. Statistics Canada: Distributions of household economic accounts for income, consumption, saving and wealth of Canadian households, fourth quarter 2024

    3. Knight Frank: The Wealth Report

    4. Fortune Magazine: Millennials are discovering this recession-resistant asset of the super-rich—and some indexes show it’s outperforming the S&P 500

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Are you rich enough to join the top 1%? Here’s the net worth you need to rank among Canada’s wealthiest — plus a few strategies to build that first-class portfolio

    Are you rich enough to join the top 1%? Here’s the net worth you need to rank among Canada’s wealthiest — plus a few strategies to build that first-class portfolio

    For the ambitious investor, setting a benchmark for the amount of wealth an individual household needs to accumulate to ascend into the top income bracket is paramount.

    You need to make at least $586,900 per year to be considered a top 1% earner in Canada, according to data from Statistics Canada.

    The wealthiest households accounted for almost two-thirds (64.8%) of Canada’s total net worthin the fourth quarter of 2024, at an average of $3.3 million per household, while the least wealthy (bottom 40% of the wealth distribution) accounted for 3.3%, at an average of $84,600 according to Statistics Canada

    While most of that net worth is a derivative of the assets a household owns, it’s also true that the ultra-wealthy have certain profiles that are worth emulating for those who are interested.

    Here are some actionable strategies that can help you build your investment portfolio like the top 1%.

    Diversify like the 1%

    While most of high net worth households’ capital is tied up in stocks, real estate and alternative assets make up the rest.

    Real estate

    One of the more common themes among well-to-do households is that a large percentage own real estate.

    According to Knight Frank global survey of over 600 wealth managers that manage nearly US$3 trillion in assets, primary and secondary homes account for around 26% of the overall net worth of ultra-high net worth individuals in North America.

    So, adding those two asset classes together, it’s clear that investors who own real estate tend to generate much higher gains over time.

    Some of that could be due to the forced savings effect that real estate provides. Being a relatively illiquid asset with high transaction costs, those who simply pay their mortgage down each and every month gain a pile of equity (assuming you don’t refinance).Luckily, investing platforms are making it easier than ever to tap into the real estate market.

    Invest in creative alternative assets

    Ultra-high net-worth individuals and households generally have some form of alternative investment in their portfolio.

    Fine art is one investment that consistently outperforms the stock market in the long-run. In fact, according to a report in Fortune Magazine, contemporary art outperformed the S&P 500 with a compound annual growth rate of 12.6% between 1995 and 2022.

    Many investors consider it an asset reserved for the top 1%, but that’s no longer the case.

    If you’re looking to diversify your portfolio in the fine art and collectibles market, Masterworks is a platform worth considering.

    Masterworks is a top platform for retail and accredited investors to purchase fractional shares of artwork by iconic artists like Banksy and Basquiat.

    Masterworks’ team scours the art market for the best deals, buys them at a discount, and offers these shares to members.

    Their platform is easy to use, and the Masterworks team has been working since 2019 to realize representative annualized net returns like +17.6%, +17.8%, and +21.5% (among assets held for longer than one year). See important Regulation A disclosures at Masterworks.com/cd

    How to find the right asset mix

    It can be tricky to figure out the right mix of investment types at your individual income level, as variances in net worth and financial goals make generalized advice difficult to follow. If you’re looking for peace of mind, hiring a financial advisor can help you to feel good about your money moves.

    Sources

    1. Statistics Canada: High income tax filers in Canada

    2. Statistics Canada: Distributions of household economic accounts for income, consumption, saving and wealth of Canadian households, fourth quarter 2024

    3. Knight Frank: The Wealth Report

    4. Fortune Magazine: Millennials are discovering this recession-resistant asset of the super-rich—and some indexes show it’s outperforming the S&P 500

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Mark Cuban had a hot take on Warren Buffett’s investment strategy, claimed buy-and-hold is a ‘crock’ — which billionaire’s investing style suits your wealth goals?

    Mark Cuban had a hot take on Warren Buffett’s investment strategy, claimed buy-and-hold is a ‘crock’ — which billionaire’s investing style suits your wealth goals?

    We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

    Mark Cuban, the outspoken owner of the Dallas Mavericks, is a man with a reported net worth of more than $5 billion. He’s also an investor many pay close attention to.

    His recent comments on diversification, for example, have challenged the popular wisdom of many other notable investors, such as Warren Buffett.

    In the past, Buffett has argued that “diversification is a protection against ignorance.” This advice is highly valued by investors looking to take a more passive approach. Those that don’t want to invest the time as well as the money in picking stocks can rely on index funds (which track the movements of the overall market and provide diversification), effectively removing the need to understand stock performance.

    Mark Cuban, on the other hand, has said that he believes diversification is “for idiots” and that buy-and-hold investing is a “crock.” It’s a strong take, but one many professional money managers stand by when looking to beat the market (making concentrated bets that are right are usually required to beat any benchmark).

    However, Cuban’s appetite for risk is larger than most. In fact, as a longtime investor on Shark Tank, he recently admitted that his investments in the shows’ featured businesses has cost him $20 million.

    For those who are more conservative with their money, let’s look at a few asset classes, and how to achieve diversification to mitigate risk.

    Make informed market moves

    In a 2017 report from Cambridge Associates, diversification was shown to be the more reliable option:

    “Diversified portfolios still prevail over the long term… if those investors with highly diversified portfolios had abandoned that approach during the bull market of the 1990s, they would have earned lower long-term returns and have smaller portfolios today as a result.”

    Clearly, Buffett’s long-range view is borne out by the market’s history.

    Those looking to take the Warren Buffett approach to investing may consider buying index funds that track total market indices around the globe. That’s about as close to true diversification as one can get.

    If you’re looking for guidance on how to beat the market like Cuban, then you’ll need expert advice.

    The team of former hedge fund analysts and experts at Moby spend hundreds of hours each week sifting through financial news and data to provide top-tier stock and crypto reports to keep you up-to-date on what’s moving the markets.

    Moby’s superior research can help you reduce the guesswork when selecting stocks and ETFs. In four years, across almost 400 stock picks, Moby’s recommendations have beaten the S&P 500 by almost 12%, on average — that might be enough to turn even Cuban’s or Buffett’s head.

    With their easy-to-understand formats, you can become a wiser investor in just five minutes, backed by a 30-day money back guarantee.

    Alternatives to the stock market

    For many investors, finding alternative asset classes outside of the stock market can be a great place to start diversifying.

    Real estate

    Real estate is a common alternative to the stock market, but owning a property and managing tenants can make this asset less appealing to those looking for a passive income stream. Residential real estate is also an option for diversifying your portfolio.

    While high home prices and mortgage rates can make buying less appealing, prospective homebuyers are not the only ones sweating housing prices — rental prices are also high. According to Realtor.com, in April 2024 the median rent price for a two bedroom unit in the U.S. was $1,916.

    However, you can make the most of high rental prices by investing in rental properties through Arrived. Their platform allows you to invest in shares of rental homes and vacation rentals without taking on the responsibilities of property management or homeownership.

    With Arrived, you can browse a curated selection of homes, each vetted for their appreciation and income potential. Once you find a property you like, you can choose the number of shares you want to buy and start investing in real estate with just $100.

    If you’re searching for an investment that offers both stability and potential for tempting returns, commercial real estate might be the answer. Unlike the stock market, which can be highly volatile, commercial real estate provides steady income streams with generally lower volatility and a low correlation to the S&P 500, according to Nareit data.

    First National Realty Partners (FNRP) allows accredited investors to access institutional-quality commercial real estate investments — without the leg work of finding deals yourself.

    FNRP — one of the fastest-growing private equity firms — specializes in grocery-anchored commercial real estate. The firm has developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart and Whole Foods, and provides insights into the best properties both on and off-market.

    FNRP’s secure online platform makes investing in commercial real estate convenient and simple. You can engage with experts, explore available deals and easily make an allocation, all in one personalized portal.

    A creative alternative

    For those looking to further diversify like a billionaire, investing in blue-chip contemporary art is also an option worth considering.

    Over the past 25 years, contemporary art has outpaced the S&P 500 in performance making it a unique opportunity to diversify your portfolio outside the stock market.

    Masterworks knows the power of art investing. Their platform offers 900k+ investors the opportunity to invest in this asset class as part of their overall portfolio strategy. When Masterworks sells a painting – like the 23 it’s already sold – investors reap their portion of any profits.

    In fact, from their 23 exits so far, Masterworks investors have realized representative annualized net returns like +17.6%, +17.8%, and +21.5% (among assets held for longer than one year).

    It’s easy to get started, but offerings can sell out in minutes. Skip the waitlist and get started in diversifying your portfolio today.

    Get help building your own strategy

    No matter what kind of investor you are, one thing remains true: having a team to advise you on key investing decisions is a good move. Both Buffett and Cuban have experienced teams behind them, supporting their decision-making processes and providing key functions that a single individual simply can’t possibly accomplish on their own.

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.