Where Do Billionaires Keep Their Money?

Many billionaires haven’t just acquired wealth, they’ve steadily built it over time. Their long-term success naturally leads people to wonder where they invest or store their money to achieve sustained growth of their net worth. Below is a look at some of the most common investment vehicles billionaires rely on to preserve and expand their wealth.

A financial advisor can help you develop a strategy that gets the most out of your money (even if you’re not a billionaire).

1. Cash and Cash Equivalents

Cash and cash equivalents are common places where billionaires keep some of their money. Though not often thought of as an investment, cash is a liquid asset, meaning you can use it in a variety of ways as needs or desires arise. In a crisis, having cash on hand gives you the flexibility to respond. That’s why billionaires keep a significant portion of their money in cash and cash equivalents.

However, with current rates of inflation, cash has less of an emphasis in billionaires’ portfolios. Inflation causes the value of money to drop, so having too much of it on hand during an inflationary period can mean you lose significantly.

2. Commodities

Commodities are often another piece of a billionaire’s investment portfolio, and having such assets can help hedge against risk, inflation and volatility. For instance, in a scenario where inflation is causing difficulty for the rest of the market, having investments in raw materials whose price is rising can help protect you if other parts of your portfolio are suffering. People and economies depend on commodities, and inflation makes them worth more money.

Raw materials and agricultural products – like precious metals, industrial metals like copper, oil and natural gas, coffee, corn, pork bellies and soy beans – are popular types of commodities held and traded by billionaires or their agents, such as their family office.

3. Foreign Currencies

Holding foreign currencies offers billionaires the potential to capitalize on fluctuations of value in various currencies. It’s simply a form of diversification: Rather than have all their assets denominated in one currency, they spread some of their wealth to assets denominated in other currencies. That offers protection against one currency falling and it also offers the prospect of capital appreciation if another currency in which they have assets gains value.

4. Securities

Another common place where billionaires keep their money is in securities. Securities are financial investments and instruments with some value that can be traded, oftentimes on public markets. Common types of securities include bonds, stocks, mutual funds, and exchange-traded funds (ETFs).

Funds and stocks are the bread-and-butter of investment portfolios. Billionaires use these investments to ensure their money grows steadily. Billionaires typically hold onto these investments, instead of trying to time the market for a quick buck. That means they’re relying on the long-term growth of the market to give them a return.

5. Private Equity and Hedge Funds

Many investors are keen to study where do billionaires keep their money.

Private equity and hedge funds sit adjacent to securities and trading markets. While they aren’t the same thing, these two types of investment tools are popular among billionaires. They appeal to people of high net worth who can afford large investments and higher risk. Such people are sometimes categorized as sophisticated investors or accredited investors.

Hedge funds use large pools of money and strategic investments in a variety of assets to generate high returns. Private equity, on the other hand, trades in privately owned businesses with the goal of running the business for higher profits. Both require a significant amount of money to participate, keeping them from being an option for many investors.

6. Real Estate

It should come as no surprise that one place billionaires keep their money is in real estate. One of the most common ways to invest in real estate without worrying about constant maintenance is to put your money into real estate investment trusts (REITs). This can provide you with a strong return while someone else manages the investments and the physical properties.

Commercial, industrial and residential property investments can also offer a steady stream of income from tenants. Of course, owning real estate is great when its value is growing, another advantage of owning real estate is tax efficiency. For instance, if your property depreciates, it’s deductible from your taxes.

7. Collectibles

When billionaires are looking for places beyond traditional investments to keep their money, they might turn to tangible, collectible investments. These often include pricey collectible items, like vintage cars, fine art and rare or antique musical instruments and original manuscripts of famous books. While all successful investing requires research, it’s especially true for collectibles. The investor needs both an interest in the items, a discerning eye and the ability to not become immediately emotionally invested.

8. Cryptocurrencies

Cryptocurrencies – like Bitcoin, Dogecoin and Ethereum – are volatile and intimidating to many, but some billionaires have chosen to invest in them. The truth is digital currencies are growing in legitimacy and value. Cryptocurrency – and the blockchain it’s built on – is a revolutionary technology that could change many industries.

Part of the appeal of crypto for some wealthy investors is its decentralized design and global reach. Cryptography can make transactions difficult to alter and allows assets to move across borders without relying on traditional banking systems or currency exchange.

However, crypto is not immune to theft, as losses can occur through hacked exchanges, compromised wallets or other technology failures. It is also not tax-free: selling crypto at a profit can trigger capital gains taxes, similar to selling stocks. While crypto is not overseen by a single central authority, it is still subject to federal and state regulations, which continue to evolve.

9. Operating Businesses and Ownership Stakes

Many billionaires hold a large share of their wealth in operating businesses or private ownership stakes rather than traditional investments. This can include founder equity, controlling interests in private companies or significant ownership in closely held firms. Unlike passive investments, these holdings often provide direct influence over strategy, cash flow, and long-term value creation, which is a primary driver of billionaire-level wealth accumulation.

Tax Strategies That Influence How Billionaires Invest

Taxes also play a major role in billionaire investing. Even small differences in tax treatment can translate into millions of dollars in savings over time. As a result, ultra-high-net-worth investors structure their portfolios around strategies that reduce taxable income, defer taxes or shift assets to future generations.

While average investors may not have access to every technique, understanding these strategies can provide useful context for why billionaire portfolios look the way they do:

Capital gains harvesting. Billionaires often focus on long-term capital gains, which are taxed at lower rates than ordinary income. By holding appreciated assets such as stocks, real estate or private equity stakes for more than a year, they can potentially maximize after-tax returns. They may also time sales strategically to stay within preferred tax brackets.
Tax-loss selling. Many billionaires take advantage of market downturns by selling assets at a loss to offset gains elsewhere. This strategy, known as tax-loss harvesting, allows them to reduce their overall tax liability while reinvesting the proceeds into similar assets to maintain their market exposure.
Estate and gift tax planning. Because billionaires often aim to preserve wealth across multiple generations, estate taxes are a major consideration. They often use the annual gift tax exclusion, grantor-retained annuity trusts (GRATs), and other estate planning tools to transfer wealth efficiently while minimizing or avoiding estate taxes.
Trusts and foundations. Billionaires frequently place assets into trusts to reduce estate taxes, protect assets, streamline inheritance planning and maintain privacy. Charitable foundations or donor-advised funds also allow them to support causes they care about while receiving significant tax deductions and reducing taxable income.
Real estate depreciation and carried interest. Real estate plays a role in billionaire tax planning because depreciation deductions can offset rental income and sometimes reduce overall taxable income. Additionally, many private equity and hedge fund managers benefit from the “carried interest” tax structure, which allows a portion of their compensation to be taxed at capital gains rates rather than higher ordinary income rates.

How These Strategies Can Apply to Everyday Investors

You don’t need billionaire-level wealth to take lessons from how the ultra-wealthy manage money. One clear theme is diversification. Spreading money across different types of assets can reduce reliance on any single investment and make finances more resilient over time, even when markets move in unexpected ways.

Another common thread is a long-term mindset. Many wealthy investors focus on holding assets through market cycles instead of reacting to short-term changes. For everyday investors, this can mean setting a plan and sticking with it rather than constantly adjusting based on headlines or short-term performance.

Taxes also influence outcomes at every income level. While most people won’t use complex structures, being aware of how taxes affect savings and investments can shape decisions such as asset allocation, when to sell and how to use tax-advantaged accounts. Small differences can add up over time.

Professional support is another area where the gap between billionaires and everyday investors is smaller than it may seem. While the scale is different, the idea of not doing everything alone still applies. Whether through a financial advisor, planning tools, or reliable education, having guidance can help people make more deliberate choices that fit their own goals and circumstances.

Bottom Line

Eve if you're not a billionaire, it's still helpful to know where do billionaires keep their money.

You may not be a billionaire, but you can still see how they make their money work for them. By learning where billionaires keep their money, you can pursue some of these investment types yourself in order to grow your own wealth. Cash stored in savings and investments in a diverse portfolio of securities and commodities is a good starting place, but the more wealth you acquire the more you can invest in more aggressive opportunities.

Those ideas translate from theory to practice when applied with clear goals, discipline and attention to taxes.

“Billionaires, unsurprisingly, use sophisticated strategies to protect and grow their wealth. But some of their tactics, such as tax-loss harvesting and investing in a diversified portfolio of stocks and bonds, can be used on a smaller scale by everyday investors who want to put their money to work and minimize the tax bite,” Tanza Loudenback, CFP®.

Tanza Loudenback, Certified Financial Planner™ (CFP®), provided the quote used in this article. Please note that Tanza is not a participant in SmartAsset AMP, is not an employee of SmartAsset and has been compensated. The opinion voiced in the quote is for general information only and is not intended to provide specific advice or recommendations.

Tips on Investing Like a Billionaire

Billionaires didn’t become rich without help, so there’s no reason you should struggle alone. You can work with an experienced financial advisor to help you create a financial plan and allocate your assets correctly. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
If you’re ready to know your investments better, one step you can take is calculating your rate of return. See how the growth of your investments over time will affect how much return you see. Check out SmartAsset’s investment calculator to get started.