What Do Multi-Millionaires Invest In?

Most people make 401K or IRA investment decisions throughout their lives, but there are fewer who are successful at becoming millionaires or multi-millionaires. These people often get rich, at least in part, by making the right decisions on where to invest their money. Furthermore, even after making their millions, multi-millionaires continue to invest their money in the market to increase their nest egg.

Multi-millionaires, like most people, invest in companies and stocks. They make the most informed decisions possible and then invest where they believe they will have the greatest return. However, multi-millionaires do have some money to play with and thus may take more risks than others feel comfortable with.

Stocks

Still, the investments that some of the most famous multi-millionaires have invested in are just some regular stocks which can be purchased by anyone. For example:

• Berkshire Hathaway: Many multi-millionaires find themselves investing in this company because of its track record. Bershire Hathaway is a combination of companies which have proven over the years to have strong, profitable businesses. This company has a proven record of earning investors a great deal of money. The risk of investment is, therefore, somewhat lower than other stocks. Some investors use their investment in this company to even out the risk of their portfolio. This creates a cushion for their portfolio in case a riskier stock fails.

• Brookfield Asset Management: This company is Canadian-owned and is essentially a clone to Berkshire in regards to its lower levels of risk. The company owns real property such as land, buildings, and other types of property.

• Leucadia National: This company has stakes in two other major companies – AmeriCredit and Jefferies Group. It is a holding company that is extremely diversified, with interests in a variety of industries including telecommunications, gaming, contract oil and gas drilling, and manufacturing. Over three decades, this stock has increased by more than 15%. This is not as much of a growth rate in the share price as Berkshire has achieved over the same period of time, but Leucadia National provides an impressive return  nonetheless.

• Loews: This company includes three subsidiaries that are publicly-traded. The three subsidiaries of the company specialize in insurance, oil and gas drilling, and gas pipelines.

• Markel: Modeled after Berkshire, Merkel is an insurance company. The company has increased the book value of their shares by 21.2% annually since 1996.

Mutual Funds and Other Investments

The wealthy don't put all their investment funds into stocks. Multi-millionaires also invest in mutual funds, such as Fairholme Fund, bonds, futures and the foreign exchange market. Some also invest in real estate, buying apartment buildings or condos or land and then either renting that land out or selling it years later for a profit.