Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.
High net worth individuals — typically those with $1 million or more in investable assets — held large portions of their total portfolio in cash in 2024. According to a survey conducted by Goldman Sachs, wealthy individuals park roughly 20% of their net worth in cash and cash equivalent holdings (1).
Higher market volatility and fears regarding persistently high inflation levels are a few major contributors to the shift away from equities and bonds.
Top Picks
-
The ultra-rich use these 5 real estate strategies to build wealth while they sleep — you can start with just $100
-
The IRS usually taxes gold as a collectible — but this little-known strategy lets you hold physical bullion tax-free. Get your free guide from Priority Gold
-
Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s how to fix it ASAP
And at least some ultra-high-net-worth individuals seem to agree. Before retiring on Dec. 31, 2025, Warren Buffett — the former Berkshire Hathaway CEO and the world’s ninth-richest person according to Forbes real-time net worth tracker (2) — had built the company’s cash balance to a staggering $381.7 billion by the end of the third quarter of 2025 (3).
The strategy paid off — Buffett’s net worth grew by roughly $21 billion last year, despite a tumultuous market backdrop.
Buffett isn’t the only one quietly ditching stocks. Billionaire investor and co-founder of PayPal, Peter Thiel, sold roughly $100 million worth of Nvidia shares through his hedge fund, Thiel Macro, in the third quarter of 2025 (4).
While Nvidia’s stock price surged by nearly 35% in 2025, such moves by the ultra-wealthy spark concerns about a potential AI bubble (5).
As U.S. equities grapple with uncertainties amid the ongoing tariff concerns and potential market overvaluation, cash and cash equivalents might help you hold onto your wealth in stormy weather.
Better investment alternatives
The richer investors get, the more likely they are to look beyond traditional investments. The Goldman Sachs survey revealed that nearly 4 in 10 people with $1 million to $5 million in investable assets have exposure to alternative investments. For those with more than $10 million, alternatives are even more common, with 80% holding them in some form.
For those who don’t want to deal with stock market volatility, there are accessible ways to invest in alternative assets and shield yourself from a potential crash.
Read More: Thanks to Jeff Bezos, you can become a landlord for $100 — without the headache of actually being one
Hedging with real estate
One alternative option that can provide returns amidst economic turmoil is real estate.
Rental properties have long been a proven source of steady, passive income for investors. But managing properties costs time, effort and serious cash that many investors simply don’t have.
With that said, that doesn’t mean that there aren’t options for those looking to tap into real estate as an investment vehicle without the hassle of property management.
Turn your cash into rental income
One way to get into this market is by investing in shares of vacation homes or rental properties through Arrived.
Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord.
To get started, simply browse through their selection of vetted properties, each picked for their appreciation and income-generating potential. Once you choose a property, you can start investing with as little as $100, reaping any quarterly dividends.
Become a corporate landlord
Residential real estate isn’t the only option if you’re keen to diversify.
If diversifying into multifamily rentals appeals to you, you could consider investing with Lightstone DIRECT, a new investing platform from the Lightstone Group, one of the largest private real estate companies in the country with over 25,000 multifamily units in its portfolio.
Since they eliminate intermediaries — brokers and crowdfunding middlemen — accredited investors with a minimum investment of $100,000 can gain direct access to institutional-quality multifamily opportunities. This streamlined model can help reduce fees while enhancing transparency and control.
And with Lightstone DIRECT, you invest in single-asset multifamily deals alongside Lightstone — a true partner — as Lightstone puts at least 20% of its own capital into every offering. All of Lightstone’s investment opportunities undergo a rigorous, multi-stage review before being approved by Lightstone’s Principals, including Founder David Lichtenstein.
How it works is simple: Just sign up with your email, and you can schedule a call with a capital formation expert to assess your investment opportunities. From here, all you have to do is verify your details to begin investing.
Founded in 1986, Lightstone has a proven track record of delivering strong risk-adjusted returns across market cycles with a 27.6% historical net IRR and 2.54x historical net equity multiple on realized investments since 2004. All told, Lightstone has $12 billion in assets under management — including in industrial and commercial real estate.
As such, even if multifamily rentals don’t appeal to you, Lightstone could still serve you well as an investment vehicle for other real estate verticals.
Get started today with Lightstone DIRECT and invest alongside experienced professionals with skin in the game.
Art as an asset class
Fine art tends to maintain its value during turbulent markets. According to a 2025 survey conducted by UBS, high-net-worth collectors are still maintaining their confidence in art — allocating roughly 20% of their wealth in the asset on average in 2025 (6).
Until recently, this world was off-limits to many investors. Not everyone has the time — or cash — to secure a beloved piece of contemporary art. Besides, much of the art world is locked behind a network of brokers, gallery owners and appraisers.
Now, with Masterworks, you can buy fractional shares in multimillion-dollar works by icons like Banksy, Picasso and Basquiat. While art can be illiquid and typically requires a long-term hold, it offers unique portfolio diversification.
Masterworks has sold 25 artworks so far, yielding net annualized returns like 14.6%, 17.6%, and 17.8%.
Even better, if you’re interested in art you can skip the waitlist and go straight to investing.
Note that past performance is not indicative of future returns. Investing involves risk. See important Regulation A disclosures at Masterworks.com/cd
You May Also Like
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Goldman Sachs (1); Forbes (2); Bloomberg (3); Reuters (4); MarketWatch (5); UBS (6)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
