How the Rich store their Money during Wars
Preparation is everything. Stefan Neuss explains the five storage facilities the rich use to protect their money during wars and unstable times, from gold and silver to land, companies, securities and crypto.
How do the rich protect their money when war breaks out? According to Stefan Neuss, founder and managing director of WERA Capital Partners, there are five storage facilities. As a German, he says, he knows the topic well: his country was destroyed twice by war.
Preparation is everything
What separates the rich from the poor is planning. The rich always have a plan, and whatever they do, they do with purpose and a time horizon. They ask what happens in one year, in two, in five and in ten. That is the foundation of how they store money through war times.
Storage facility 1: small gold and silver bars
Imagine banks are closed, no cash is available, cash is worthless paper and there is hyperinflation. How do you pay for your day-to-day life? This is why the rich always keep small gold and silver bars. First secure your daily life, and only then look at the next facilities.
Storage facility 2: properties, especially land
The rich always own property: single homes, mansions, multi-family homes, blocks of flats or single flats, and above all land. Buildings can be bombed and destroyed, as happened massively in Germany during the world wars. But even if the building is gone, you are still the owner of the land.
Storage facility 3: companies
Companies are productive assets, such as a plumbing, electrical or building company, or a factory if you have more means. They help you to make a fresh start after the war ends. Shares in publicly listed companies belong here too.
Storage facility 4: listed securities
Bonds and funds listed on the stock exchange are a niche product where the rich and super rich store money, because you need capital to do it. Concentrate on your day-to-day life first, then put what you can spare into listed securities. After a war there is usually a currency reset, which is why the choice of bonds matters.
Storage facility 5: cryptocurrencies
Neuss is a strong believer that crypto is the future of the payment system. He cannot predict the future, but thinks logically that part of your money should be in cryptocurrencies like Bitcoin.
Diversify as your wealth grows
The more money you have, the more you can diversify. With less money, you concentrate on your daily life and the small gold and silver bars. If you want to learn how to build a portfolio from your assets, get in touch with the WERA team.
Watch the full video: How the Rich store their Money during Wars on YouTube