WWE legend Brock Lesnar grew up a ‘dirt poor’ farm kid. Now he uses 5,000 acres of land to protect his riches. Here’s how to copy his power move

“And then, you can't own land in Canada unless you're a resident or you get your citizenship. So then [I thought], ‘Well, okay, I’ll move there and live there and get our residency.’ And then more land was coming for sale, you know — making land investments with my money and hedging my stocks and bonds and buying land and farming.”

Lesnar said that he grew up as a “dirt poor” farm kid and wanted to “give a good crack at this farming thing” now that he’s got more money.

In the process, he’s built quite the farming operation. “I have a full-time functioning farm. We farm small grains — 5,000 acres. I’ve got great employees,” he said.

And Lesnar has a point about farmland serving as a hedge.

While stocks and bonds can swing based on corporate profits, interest rates, Fed policy and broader market sentiment, farmland is tied to food demand and commodity markets. It produces crop yields and doesn’t always move in sync with the S&P 500 or bonds.

Of course, not everyone can afford to buy thousands of acres in Saskatchewan or run a full farming operation with employees. But for investors looking to hedge against the swings of stocks and bonds, there are other ways to add stability and diversification to a portfolio. Here’s a look at three of them.

The new ‘anti-fragile’ hedge Wall Street is betting on

For decades, the classic 60/40 portfolio — 60% stocks and 40% bonds — served as the cornerstone of balanced investing. But amid persistent inflation and volatile bond markets, Morgan Stanley has suggested a different approach: add gold to the mix.

Instead of 60% stocks and 40% bonds, Morgan Stanley chief investment officer Mike Wilson now favors 60% stocks, 20% fixed income and 20% gold.

“Gold is now the anti-fragile asset to own, rather than Treasuries. High-quality equities and gold are the best hedges,” Wilson told Reuters (2).

Gold has helped investors preserve wealth for thousands of years. It’s a natural inflation hedge — unlike fiat currencies, it can’t be printed at will by central banks. It’s also considered the ultimate safe haven: not tied to any single country, currency or economy. When markets wobble or geopolitical tensions flare, investors often rush into gold, driving prices higher.

That trend is already underway. Gold prices have surged more than 50% over the past 12 months.

JPMorgan CEO Jamie Dimon recently said that in this environment, gold can “easily” rise to $10,000 an ounce.

One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an option for those looking to help shield their retirement funds against economic uncertainties.

When you make a qualifying purchase with Priority Gold, you can receive up to $10,000 in precious metals for free.

A time-tested income play

Beyond gold, real estate has long been another go-to asset for investors looking to protect — and steadily grow — their wealth during uncertain times.

Like stocks, real estate has its cycles, but it doesn’t rely on a booming market to generate returns. Even in a downturn, high-quality, essential real estate can continue to produce passive income through rent. In other words, you don’t have to wait for prices to rise to see a payoff — the asset itself can work for you.

In fact, investing legend Warren Buffett has often pointed to real estate as a prime example of a productive, income-generating asset. In 2022, Buffett remarked that if you offered him “1% of all the apartment houses in the country” for $25 billion, he would “write you a check (3).”

Why? Because no matter what’s happening in the economy, people still need a place to live and apartments can consistently produce rent money.

Of course, you don’t need billions — or even to buy an entire property outright — to benefit from real estate investing. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.

Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.

The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment.

Another option is Mogul, a real estate investment platform offering fractional ownership in blue-chip rental properties. It gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 A.M. tenant calls.

Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. In other words, you gain access to institutional-quality offerings for a fraction of the usual cost.

Each property undergoes a rigorous vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.

You can sign up for an account and then browse available properties here.

An overlooked asset class

Lesnar isn’t alone in looking for alternatives. Prominent investors have stressed the importance of diversification — and for good reason. Many traditional assets tend to move in tandem, especially during periods of market stress.

This is where, for many investors, alternative assets come into play. These can include everything from real estate and precious metals to private equity and collectibles.