
UHNWI is a segment of wealthy people called “Ultra High Net Worth Individuals” – net worth of more than $30M
This is the elite club of people who figure in the Fortune ranking and are the “Movers and Shakers” of the world.
This infographic as of last year highlights the top 20 countries for the world Ultra Wealthy (Looking forward to seeing how this looks this year, especially with all the talk that is going around about a looming recession)
The one thing that stands out is that most countries have seen positive growth in the number of UHNWIs.
Amidst the pandemic and the chaos created by lockdowns, we have seen the wealth of the wealthy increase substantially. So what could be the rationale for this?
To a great extent, it depends on the areas in that the wealthy invest. There are asset classes that have crazy returns that are out of reach for even rich people.
Here are a few of them:
a. Real estate in prime locations with price tags that are exorbitant
b. Collectables, limited edition luxury items – they appreciate over time
c. Investment in evolving technologies – eg. blockchain-driven cryptos
d. Investing in high-growth early-stage companies that end up providing 10x, 100x growth, and exit
e. Their ability to diversify their portfolio across geo – thereby leveraging the best of local and global environments
f. A team of great fund managers who are dedicated and always on a look out for strategic investment and asset reallocation
We might still not be able to buy a penthouse in Manhattan or own a Bugatti Veron limited edition but keeping an eye on evolving technologies can help us invest in companies that can be multi-baggers. It is easier said than done, but there is a ray of hope.