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High net worth individuals—typically those with investable assets of $1 million or more—held a large portion of their total portfolio in cash in 2024. According to a survey by Goldman Sachs, wealthy individuals park approximately 20% of their net worth in cash and cash equivalents (1).
Higher market volatility and fears of persistently high levels of inflation are some major contributors to the shift away from stocks and bonds.
And at least some ultra-high net worth individuals seem to agree. Before he retires on December 31, 2025, Warren Buffett—former CEO of Berkshire Hathaway and the ninth-richest person in the world according to real-time net worth tracker Forbes (2)—raised the company’s cash balance to $381.7 billion by the end of the third quarter of 2025 (3).
The strategy paid off—Buffett’s net worth grew by about $21 billion last year despite a tumultuous market environment.
Buffett isn’t the only one ditching stocks. Billionaire investor and PayPal co-founder Peter Thiel sold about $100 million worth of Nvidia stock through his hedge fund, Thiel Macro, in the third quarter of 2025 (4).
While Nvidia’s share price is up nearly 35% in 2025, such moves by the ultra-rich are raising concerns about a potential AI bubble (5).
As U.S. stocks face uncertainties amid current concerns about tariffs and potential market overvaluation, cash and cash equivalents can help preserve your wealth through stormy weather.
The wealthier investors become, the more likely they are to look beyond traditional investments. The Goldman Sachs survey found that nearly 4 in 10 people with investable assets of $1 million to $5 million have exposure to alternative investments. For those with more than $10 million, alternatives are even more common, with 80% owning them in some form.
For those who don’t want to deal with stock market volatility, there are affordable ways to invest in alternative assets and protect yourself from a potential crash.
Read more: Warren Buffett used 8 solid, repeatable rules to turn $9,800 into a $150 billion fortune. Start using them today to get rich (and stay rich)’
An alternative option that can provide returns in the midst of economic downturns is real estate.
Rental properties have long been a proven source of steady, passive income for investors. But managing properties takes time, effort and serious money that many investors simply don’t have.
That said, that doesn’t mean there aren’t options for those looking to take advantage of real estate as an investment vehicle without the hassle of property management.
One way to get into this market is to invest in vacation home shares or rental properties through Arrived.
Backed by world-class investors including Jeff Bezos, Arrived allows you to invest in vacation and rental property shares, earning a passive income stream without the extra work that comes with being an owner.
To get started, simply browse their selection of vetted properties, each chosen 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.
But residential real estate is not the only option if you want to diversify.
Accredited investors with capital on hand can easily invest in commercial real estate through First National Realty Partners (FNRP).
With FNRP, you have access to institutional-quality, retail-anchored commercial real estate investments without the legwork of finding or managing deals on your own.
Thanks to triple net leases, you can invest in these properties without worrying about cutting tenant costs into potential profits. That means tenants take care of property taxes, building insurance and common area maintenance — plus base rent.
With a minimum investment of $50,000, accredited investors can own a portion of properties leased by national brands like Whole Foods, Kroger and Walmart that provide essential goods to their communities. After all, even in a time of crisis, people still need somewhere to buy bread.
Mogul is a real estate investment platform offering fractional ownership in prime rental properties that provides investors with monthly rental income, real-time appreciation and tax benefits – without the need for a large down payment or 3am calls from tenants.
Founded by former Goldman Sachs real estate investors, the team handpicks the top 1% of single-family rental homes across the country for you. Simply put, you can invest in quality institutional offerings for a fraction of the usual cost.
Each property is subject to a vetting process, which requires a minimum return of 12% even in downside scenarios. Overall, the platform shows an average annual IRR of 18.8%. Their cash-on-cash returns, meanwhile, average between 10 and 12% annually.
Listings often sell in less than three hours, with investments typically ranging from $15,000 to $40,000 per property.
Fine art tends to hold its value during choppy markets. According to a 2025 survey by UBS, high-net-worth collectors continue to place their trust in art – allocating around 20% of their wealth to assets on average in 2025 (6).
Until recently, this world was off limits to many investors. Not everyone has the time – or money – to secure a beloved piece of contemporary art. Furthermore, 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 multi-million dollar works by icons like Banksy, Picasso and Basquiat. While art can be illiquid and typically requires long-term holding, it provides unique portfolio diversification.
Masterworks has sold 25 artworks to date, producing net annual returns of 14.6%, 17.6% and 17.8%.
Even better, if you’re interested in art, you can skip the waiting list and go straight to investing.
Note that past performance is not indicative of future returns. Investment involves risk. See important Regulation A information at Masterworks.com/cd
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