Ultra-Rich Americans Are Ditching Stocks And Real Estate, Warns Investing Legend - 5 Assets They're Using To Shockproof Their Millions

2025-11-15 11:02:44

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The U.S. stock market recently hit new highs, but according to Michael Sonnenfeldt, founder of Tiger 21 - an exclusive network of ultra-high-net-worth investors - the ultra-rich aren't chasing the hype.

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“Actually, they just pulled back a couple points in the last quarter from the stock market and from real estate,” Sonnenfeldt told CNBC, noting that the average Tiger 21 member controls more than $100 million [1].

So where is their money going?

Private equity remains a“strong” holding, he said, but members are increasingly allocating to areas that were once ignored.“For the first time, cash is coming up a little, fixed income is coming up a little and gold and Bitcoin.”

The shift points to a more defensive posture. A stronger allocation to cash and fixed income signals a renewed appetite for liquidity and steady yields after years of near-zero interest rates, while growing exposure to gold - and even Bitcoin - reflects a search for alternative stores of value.

Gold

Sonnenfeldt says his members are approaching their portfolios with a little more caution these days. Naturally, when they've created as much wealth as they have, he adds, preservation is their highest priority.

That makes gold a natural destination. The precious metal has served as a store of value for thousands of years. It isn't tied to any single country, currency or economy and it can't be printed like fiat money. Investors often flock to it during periods of economic stress or geopolitical uncertainty - pushing prices higher.

Over the past 12 months, gold has climbed more than 40% - and more gains could be on the way. Both Goldman Sachs [2] and JPMorgan [3] forecast that gold could hit $4,000 an ounce by 2026 - a milestone reached in October 2025.

One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Thor Metals.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.

To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.

Bitcoin

Once considered a niche asset, Bitcoin has steadily moved into the financial mainstream.

“Bitcoin as a market is still only a 10th the size of gold, but they both are secure assets in members' minds,” Sonnenfeldt said.“For the first time, people aren't talking about Bitcoin just as speculation, but actually an alternative asset that can be held during tough times. Not everybody believes in it, but those that do are making a big splash.”

Part of Bitcoin's appeal is its built-in scarcity. Like gold, Bitcoin can't be created at will by central banks. Instead, its maximum supply is capped at 21 million by mathematical algorithms.

For those looking to hop on the Bitcoin bandwagon, platforms like Robinhood Crypto allow users to buy and sell crypto with as little as $1 without any trading fees or commissions.

Robinhood Crypto has the lowest trading cost on average in the U.S. - meaning you could get up to 1.6% more crypto compared to trading on other platforms.

Read more: Warren Buffett used 8 simple money rules to turn $9,800 into a stunning $150B - start using them today to get rich (and then stay rich)

'Overwhelmingly weighted' in this asset - and Buffett's simple strategy

Sonnenfeldt stressed that a slight pullback from stocks doesn't mean his members are abandoning them.

“We're still overwhelmingly weighted for the mid- and long-term in equities. So there's long term bullish, but in the short term, it's a little choppy water, so people are trying to steady the boat in a rocky road,” he said.

He noted that many Tiger 21 members built their fortunes as entrepreneurs, where outsized returns were possible, but sustaining those gains as investors is far more challenging. To illustrate the point, he invoked Warren Buffett's success - and his famously simple strategy.

“You take Warren Buffett... his track record has been 20% but he's been doing it for 65 years. Our members - to become Tiger members - had higher returns than 20% and they could never duplicate those returns as investors,” Sonnenfeldt said.

“So this divide between being an entrepreneur for five or 10 or 20 years and creating extraordinary wealth and then what do you do with it? It's the reason why Warren Buffet has told his heirs to put it in the S&P, because even they won't be able to get the benefit of his track record going forward.”

Buffett himself has often said,“In my view, for most people, the best thing to do is own the S&P 500 index fund [4].” He's even written it into his estate plan, directing that 90% of his wife's inheritance be placed in“a very low-cost S&P 500 index fund” after his passing.

An S&P 500 index fund gives investors instant exposure to 500 of America's largest companies across a wide range of industries, providing diversification without the need for constant monitoring or active management.

The beauty of this approach is its accessibility - anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns - a popular app that automatically invests your spare change.

Signing up for Acorns takes just minutes: link your cards and Acorns will round up each purchase to the nearest dollar, investing the difference - your spare change - into a diversified portfolio. With Acorns, you can invest in an S&P 500 ETF with as little as $5 - and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.

Real estate - revisited

Finally, Sonnenfeldt noted a small pullback in real estate allocations. But the asset class remains a time-tested way to preserve wealth - particularly in inflationary periods.

As inflation pushes up the cost of materials, labor and land, property values often climb in tandem. Rental income tends to follow as well, providing landlords with cash flow that adjusts with inflation.

In fact, Buffett has long highlighted real estate as a prime example of a productive, income-generating asset. In 2022, Buffett remarked that if you offered him“1% of all the apartment houses in the country” for $25 billion, he would“write you a check [5].”

Why? Because no matter what's happening in the economy, people still need a place to live and apartments can consistently produce rent money.

Of course, you don't need billions - or even to buy a single house - to benefit from real estate investing. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.

Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.

The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you want to purchase and then sit back as you start receiving any positive rental income distributions from your investment.

Mogul is a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits - without the need for a hefty down payment or 3 A.M. tenant calls.

Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.

Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.

Every investment is secured by real assets, not dependent on the platform's viability. Each property is held in a standalone Propco LLC, so investors own the property - not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.

Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.