I Asked ChatGPT What the Richest Americans Invest In — Here’s the Surprising List

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Have you ever wondered where the richest Americans actually put their money? It’s not just in the stock market and mega mansions.

To learn more, I asked ChatGPT what the wealthiest 1% are investing in — and the answers weren’t what I expected. From private deals most people never hear about to AI with massive growth potential, their approach looks nothing like that of the average investor.

Here’s a closer look at where the ultra-wealthy are putting their money, and what makes these investments so powerful.

Private Credit

When investors want to invest in businesses, they traditionally buy public bonds. However, with public credit, wealthy investors can invest directly in the businesses. By removing the middleman, they can increase their return on investment.

These tend to be popular investments because they’re not only backed by collateral, but can also earn steady returns of between 8% and 12%. They’re also less affected by stock market volatility, making them ideal for adding diversification.

Most investors can’t access these deals because they need big minimum investments and connections with private funds or family offices.

Private Real Estate Funds and Syndications

Real estate is a great way for people to grow wealth. Unfortunately, most don’t have the time to actively manage rental properties. This is why most wealthy investors tend to go the route of private real estate funds and syndications. 

These private real estate funds pool investors’ money to purchase properties, often large apartment complexes or commercial spaces. Investors share in the income and appreciation without needing to manage the property themselves.

These opportunities provide investors with monthly or quarterly cash flow and offer valuable tax benefits through depreciation. Real estate is also a great way to hedge against inflation.

Secondaries in Private Equity

Private equity funds usually require investors to lock up their money for seven to 10 years. That’s not ideal for many people. Instead, the wealthy are turning to secondary private equity deals. These allow investors to buy out others’ stakes in the fund, typically at a discount.

These deals tend to be popular among wealthy investors because they provide quicker liquidity compared to traditional private equity investments. They also give exposure to established companies, not just startups. 

AI and Deep Tech Venture Capital

Venture capital is usually something regular investors don’t participate in because it demands a large investment. With venture capital, you’re investing early in private companies that have high growth potential. Today, a significant amount of private equity money is being invested in deep tech, which includes things like artificial intelligence, robotics, biotech and clean energy. 

While investors gain early access to these innovations before they hit public markets, they face considerable risk. However, with this increased risk comes the chance for significant returns. To manage some of the risk, most wealthy investors will invest alongside large venture capital firms that have already completed their due diligence and vetted the deal. 

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