High net worth individuals — typically those with $1 million or more in investable assets — held large portions of their total portfolio in cash in 2024. According to a survey conducted by Goldman Sachs, wealthy individuals park roughly 20% of their net worth in cash and cash equivalent holdings.
Higher market volatility and fears regarding persistently high inflation levels are a few major contributors to the shift away from equities and bonds.
And at least some ultra-high-net-worth individuals seem to agree. Before retiring on Dec. 31, 2025, Warren Buffett — the former Berkshire Hathaway CEO and the world’s ninth-richest person according to Forbes real-time net worth tracker — had built the company’s cash balance to a staggering $381.7 billion by the end of the third quarter of 2025.
The strategy paid off — Buffett’s net worth grew by roughly $21 billion last year, despite a tumultuous market backdrop.
Buffett isn’t the only one quietly ditching stocks. Billionaire investor and co-founder of PayPal, Peter Thiel, sold roughly $100 million worth of Nvidia shares through his hedge fund, Thiel Macro, in the third quarter of 2025.
While Nvidia’s stock price surged by nearly 35% in 2025, such moves by the ultra-wealthy spark concerns about a potential AI bubble.
As U.S. equities grapple with uncertainties amid the ongoing tariff concerns and potential market overvaluation, cash and cash equivalents might help you hold onto your wealth in stormy weather.
Better investment alternatives
The richer investors get, the more likely they are to look beyond traditional investments. The Goldman Sachs survey revealed that nearly 4 in 10 people with $1 million to $5 million in investable assets have exposure to alternative investments. For those with more than $10 million, alternatives are even more common, with 80% holding them in some form.
For those who don’t want to deal with stock market volatility, there are accessible ways to invest in alternative assets and shield yourself from a potential crash.
Hedging with real estate
One alternative option that can provide returns amidst economic turmoil is real estate.
Rental properties have long been a proven source of steady, passive income for investors. But managing properties costs time, effort and serious cash that many investors simply don’t have.
With that said, that doesn’t mean that there aren’t options for those looking to tap into real estate as an investment vehicle without the hassle of property management.
Turn your cash into rental income
One way to get into this market is by investing in shares of vacation homes or rental properties through Arrived.
Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord.
To get started, simply browse through their selection of vetted properties, each picked 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.
Become a corporate landlord
Residential real estate isn’t the only option if you’re keen to diversify.
Lightstone DIRECT offers accredited investors access to institutional-quality multifamily and industrial real estate — with a minimum investment of $100,000.
Founded in 1986 by David Lichtenstein, Lightstone Group is one of the largest privately held real estate investment firms in the U.S., with more than $12 billion in assets under management.
Over nearly-four decades, their team has delivered strong, risk-adjusted performance across multiple market cycles — including a 27.5% historical net IRR and a 2.49x historical net equity multiple on realized investments since 2004.
With Lightstone DIRECT, you gain access to that proprietary deal flow.
Here’s the kicker: Lightstone invests at least 20% of its own capital in every deal — roughly four times the industry average. With its skin in the game, the firm ensures its interests are directly aligned with those of its investors.
Art as an asset class
Fine art tends to maintain its value during turbulent markets. According to a 2025 survey conducted by UBS, high-net-worth collectors are still maintaining their confidence in art — allocating roughly 20% of their wealth in the asset on average in 2025 (6).
Until recently, this world was off-limits to many investors. Not everyone has the time — or cash — to secure a beloved piece of contemporary art. Besides, 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 multimillion-dollar works by icons like Banksy, Picasso and Basquiat. While art can be illiquid and typically requires a long-term hold, it offers unique portfolio diversification.
Masterworks has sold 25 artworks so far, yielding net annualized returns like 14.6%, 17.6%, and 17.8%.
Even better, if you’re interested in art you can skip the waitlist and go straight to investing.
Note that past performance is not indicative of future returns. Investing involves risk. See important Regulation A disclosures at Masterworks.com/cd
