Last week's New York family office event was full of insights into how the ultra-wealthy approach wealth, legacy, and life.
While you may have heard of them before, the repetitiveness reminds us and keeps us on track.
Here are my top takeaways. They might just change how you think about investing and more:
The Myth of Diversification: We're often told not to put all our eggs in one basket.
But the 1% sometimes throws that rule out the window.
They often concentrate wealth in areas where they have deep knowledge and expertise, seeking massive, game-changing returns.
Since they have conviction and experience, it's calculated risk-taking, not blind gambling.
Most ultra-rich got rich from one concentrated bet.
Family Meetings Matter: Forget stuffy boardrooms.
Successful families gather regularly (monthly or quarterly) to align on goals, share insights, and brainstorm new opportunities.
Most families have members with different careers and knowledge in different areas.
These calls allow them to share sector updates that others may need to be made aware of.
This can be as short as 20-30 minutes.
It's a chance to leverage everyone's unique skills and knowledge to benefit the family.
Patience is the Ultimate Leverage: The wealthiest investors play the long game.
They aren't chasing quick flips; they're building generational wealth.
Think of Jeff Bezos' 10,000-year clock, a monument to long-term thinking.
This patience leads to more informed decisions, bigger gains, and, often, better tax advantages.
Enjoy the Journey: Don't postpone your happiness until retirement.
The 1% understand the importance of work-life balance, prioritizing family, hobbies, and experiences.
Building wealth is a means to an end, not the end itself.
I am learning this myself and continuously reminding myself so I can minimize regrets at 85.
Emerging Opportunities: The world is changing rapidly.
Monitor emerging trends, such as the growing demand for data centers, digitization of the world (blockchain), and the potential of the cannabis industry, as regulations evolve.
This is where the biggest gains will be over the coming decade.
Being prepared and having the right team or network will bring you the biggest advantage.
Kids + Problem Solving = Future Entrepreneurs: With AI, critical thinking will be important for kids.
Encourage your kids to brainstorm solutions to everyday problems to inspire the next generation of innovators.
This sparks creativity and cultivates an entrepreneurial mindset early on.
One way is to have them identify problems they encounter during the week.
Then, have them come up with solutions to solve them.
After doing this continuously, kids will come up with a business.
Tactical Empathy Wins: Business isn't just numbers; it's more about people than anything.
If you want to achieve better outcomes in negotiations and interactions.
Building genuine connections and showing compassion can open unexpected doors and create lasting partnerships.
We are still in a world where who you know will correlate to your success and net worth.
Leaving Money to Kids: A True Legacy Goes Beyond Financial Assets.
Instilling strong values and teaching financial responsibility in your children prepares them to be wise stewards of wealth for generations to come.
Many ultra-wealthy families prioritize raising financially responsible heirs.
They have the option to leave money to non-profits, government taxes, or to their heirs.
They are opting to leave to their heirs and keep their family dynasty alive.
They teach their children strong values and money management skills and encourage early investment experiences.
By starting small and learning from their mistakes, the next generation is better prepared to handle larger sums and preserve the family's wealth.
Conclusion: Repeated actions and continuous steps will drastically improve your life.
If it will improve your family’s legacy and happiness.
While they seem small at first, they compound over your lifetime.
