Gyroscopic Investing

I always end up seeing articles like the one below:

https://reports.insidersstrategygroup.c ... /WSHIN905/

I see these and read them through and understand the logic. In this article, they speak about 5 investments that the rich normally have access to that apparently do very well while the commoners can't touch. The five investments are diamonds, rare art paintings, timber, private equity, and fine wines.

Three (perhaps four) of these items seem like they'd be commodities (diamonds, wine, and timber, maybe art) while the other is a financial product for venture capital.

I look at these and think they seem great and they tell of great past returns. They also state you can get this information for free in the beginning and then subscribe.

It just seems too good to be true but I wanted to get the forums perspective.

It seems to me that the real advantages the rich have over us commoners are trust funds set up for them before birth, easy access to high-level executive positions at companies affiliated with their families, and political access in the form of lobbying or relatives who are already in office.

Pointedstick wrote: It seems to me that the real advantages the rich have over us commoners are trust funds set up for them before birth, easy access to high-level executive positions at companies affiliated with their families, and political access in the form of lobbying or relatives who are already in office.

MangoMan,

I would agree about the illiquidity of diamonds, wine, and art. Timber might make an intereting VP play.

Pointedstick,

To your comment about relatives already in office, I learned this week that my first cousin once removed (my mom's 1st cousin) was the Secretary of the Navy back in the 80s. All I have to do now is figure out how I can communicate with him more and see if that could potentially open doors someday hah.

Private equity is extremely risky and illiquid. I think it is not a great investment, it is pure speculation. Most venture funds do not have high returns on average.

Wine?

Art?

Diamonds?

Private Equity?

That reminds me of the old saw about the best way to make a small fortune is to start with a large fortune and become a speculator.

Private equity and timber seem to make sense and IMO have value.  I'm not buying that the wealthy keep and grow their wealth through diamonds, wine and art. 

It is, and always will be about land folks. 

Timberland is low maintenance, insane tax advantages, and stump compounding.  Not everyone can get into this game though, you need huge sums of cash, leverage on timberland doesn't work as well as it does on farmland.  Also, "you can leave it on the stump and wait for the right price;" where corn, soybeans, wheat, and cotton are annual crops.

You can get there part of the way with WY/RYN/PCL, take a look at how dividends from timber REITs are treated like long term capital gains (ty timber lobby), but you will not be able to directly access the holy grail of timberland, stump compounding, without direct ownership.