Warren Buffett once warned you should be prepared for any stock you own to ‘go down 50%' and still ‘be comfortable’ — but here’s how to boost your wealth outside the rocky US stock market

Make your capital count

With the Consumer Price Index (CPI) rising 3.2% in the past year, according to the Bureau of Labor Statistics, many are left wondering how to protect their investments in such volatile times.

Beyond the lessons you can learn from the Oracle of Omaha and Mr. Wonderful, sometimes you need advice that’s tailored to your particular situation.

If you’re looking for guidance on the best way to invest, save and plan no matter what the future holds, it may be worth speaking to a financial advisor. A financial advisor can help you develop a long-term strategy, especially if you’re looking to hold a larger position in any one sector.

Professional advisors — like those at Advisor.com — can help you create a money management plan. Whether you’re looking to diversify your portfolio or grow your nest egg, Advisor.com connects you with experienced financial advisors who can help you reach your financial goals.

By partnering with a reputable advisor, you’ll gain expert insights into which alternative assets align best with your goals. Once you're matched, you can schedule a free consultation to discuss your financial strategy and explore the investment options available to best suit your needs.

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Tangible assets

So what is O’Leary’s universal investing rule?

“So the rule is very simple,” O’Leary explained in a BNN Bloomberg interview. “This will work for you day in, day out, through every market cycle. No more than five per cent in any one stock, no more than 20 per cent in any one sector.”

Data shows traditional stock diversification alone is no longer enough for younger, wealthy Americans. According to a Bank of America survey, individuals aged 21 to 23 with at least $3 million in assets have only 25% of their portfolios invested in stocks – compared to 55% for older investors.

While the stock market is a staple component in any portfolio, certain alternative assets such as farmland, art and real estate shouldn’t be overlooked.

Farmland

Even Warren Buffett sees the value in tangible assets like farmland. At Berkshire’s 2022 shareholders meeting, Buffett famously said, “If you said, for a 1% interest in all the farmland in the United States, pay our group $25 billion, I’ll write you a check this afternoon.”

Buffett isn’t traditionally known for being an agricultural investor, but his willingness to invest billions in the sector should say something of its potential.

In fact, fellow billionaire and Microsoft magnate Bill Gates also recently bought up huge swaths of U.S. farmland. Furthermore, Nasdaq reports that U.S. farmland values rose by 10.2% in 2022, outpacing the 8% inflation rate that year.

Platforms like FarmTogether make getting in on the agricultural sector more accessible by allowing accredited investors to own a stake in physical U.S. farmland and earn passive income through leasing fees, crop sales and long-term appreciation.

FarmTogether uses proprietary sourcing technology and team of experts to ensure that only the top 1% of deals are offered to prospective investors.

With over 2.1 billion in capital deployed and a conservative investment approach, FarmTogether meets many of the key needs for investors seeking to diversify their portfolios over the long term.

Real estate

Farmland isn’t the only type of property worth looking at. Commercial real estate is a stable, income-generating asset class that could protect your portfolio. During the 2008 financial crisis, Buffett capitalized on the downturn by purchasing stocks in Goldman Sachs and General Electric.

Just as Buffett found opportunity during a period of uncertainty, commercial real estate could provide the diversification and growth your portfolio needs through a platform like First National Realty Partners (FNRP).

FNRP specializes in grocery-anchored retail with historically strong return potential acts as the deal leader, providing expertise, doing the legwork and streamlining the process. The firm has developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart and Whole Foods, and provides insights into the best properties both on and off-market.

Fine art

As global wealth shifts, art and collectibles are increasingly seen as strategic assets that can offer opportunities for stability and growth.

In 2022, ultra-high net worth individuals held an estimated $2.174 trillion in art and collectibles, a figure predicted to grow to $2.861 trillion by 2026, according to the Deloitte Art and Finance Report 2023.

In fact, contemporary art prices outpaced the S&P 500 by 131% from 1995-2021, according to the Masterworks All Art Index.

If you want to dip your toes into the art world, Masterworks is a top platform for accredited and retail investors to invest in pieces of fine art that may otherwise be unattainable, due to the astronomical prices these pieces are sell at.

The platform allows you to purchase fractional shares of iconic work by artists such as Banksy and Basquiat.

Instead of spending millions to buy a single painting, everyday investors can own a share of blue-chip artwork at a fraction of the cost. Simply choose how many shares you want, and Masterworks handles the rest.

Private asset portfolios

Not ready to allocate a larger sum to just one asset?

If you’re looking to avoid putting all your eggs in one basket, but you don’t want to deal with multiple firms and brokerages, Fundrise offers the opportunity to invest across a variety of private assets. With Fundrise, you can tap into a broad portfolio that includes real estate, private debt and venture capital.

With more than two million investors and over $7 billion in real estate assets alone under management, Fundrise provides an accessible way to diversify your portfolio, with the potential to earn quarterly dividends.

Getting started is easy – provide information about your financial background, risk tolerance and investment preferences. From there, Fundrise will create a personalized portfolio tailored to your goals.