Jeff Bezos and Oprah Winfrey invest in this asset to keep their wealth safe — you may want to do the same in 2024 [From Moneywise]
~ Wednesday, May 1, 2024 Blog Post ~
By Em Norton, January 8, 2024
The stock market’s uncertainty has left just about everyone shaken up — even the ultra-rich are looking for safe havens to protect their cash.
Billionaires like Jeff Bezos and Oprah Winfrey are using fine art to bubble wrap their portfolios amid stock market volatility. Bezos has reportedly spent more than $70 million in one day on this colorful, recession-resistant asset and Oprah Winfrey also made $63 million on a sale.
Ken Griffin, the CEO of Citadel, one of the top hedge funds in the world, also invested close to $500 million of his personal money into fine art in just a few months. Meanwhile, Hollywood heavyweight Leonardo DiCaprio has owned works by Basquiat, Pablo Picasso and Takashi Murakami.
But art is no longer just reserved for investors of Bezos’ and Winfrey’s wealth levels.
Now, any accredited investor with over $100,000 can tap into this exclusive asset and invest in multimillion-dollar paintings.
Allocate at least 5% of your portfolio to art
According to financial experts, the current banking crisis is worse than the Great Recession of 2008, and close to 50% of Americans are worried about their money being safe in a bank.
As a result, they’re seeking out alternatives like fine art, which has been called “the new gold” and “one the best stores of wealth.”
Contemporary art has outpaced the S&P 500 for the last 27 years by 136%, while displaying lower correlation to stocks than both bonds and gold.
For years, there was no way to invest in art unless you had millions to buy an entire painting. But an innovative platform called Masterworks is changing that.
What is Masterworks?
Masterworks gives you the ability to invest in fractional shares of blue-chip contemporary art. That means paintings by artists like Banksy, Picasso and Basquiat.
Every piece of artwork available to invest in through Masterworks is thoroughly vetted by their team of industry leaders, and less than 3% of all artwork passes their criteria. Once the Masterworks acquisition team finds a piece they deem worthy based on proprietary data, they purchase it, securitize it, and offer fractional shares that their members can invest in.
This is where you come in.
With Masterworks, you can diversify your portfolio by investing in a piece of fine art, and you won’t need to get dressed up and spend millions at an art auction.
Masterworks will hold the painting for 3–10 years before selling it, or you can sell your shares yourself on the secondary market.
Because of its low correlation to equities, fine art can still go up in value while stocks are crashing — like in 2022, when every single one of Masterworks 9 exits were profitable, delivering returns between 10% to 35%.
Your money — even the crumpled $20 bill in your wallet — has a place in the art world. Get started with Masterworks today and you could make your portfolio as beautiful as a Starry Night.
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