Investing in gold: a sensible step for diversifying your investment portfolio
The American billionaire, who is among the TOP 400 richest people on the planet according to Forbes, for the first time bought a yellow precious metal for his own investment portfolio. Of course, this is a landmark event and a kind of signal for the entire stock market.
The state of the 77-year-old billionaire from Chicago in early 2019 was estimated at 5.5 billion dollars. Samuel made his capital as the founder of private investment company Equity International, known since 1969. The firm specializes in investments in real estate and construction companies in emerging markets.
Sam Zell has never bought gold before. This may be due to the fact that precious metals do not pay dividends and serve only to diversify the investment portfolio in times of difficulty for the market. In early 2019, this was the time.
Analysts predict that the price of yellow precious metal will rise, as smart money has entered this market. It is expected that gold will buy up other Wall Street wolves as well, seeing its growth potential. Earlier it became known that Ray Dalio, who ranks 25th in the list of the richest people according to Forbes, and a famous investor, founder of Doubleline Capital, Jeffrey Gundlah, have made large investments in the noble metal. David Einhorn, the founder of Greenlight Capital hedge fund, also put a little gold in his portfolio.
Investing in gold. Sam Zell is almost never wrong
With hundreds of successful real estate investments, billionaire Sam Zell made the wrong choice only once in his life.
This happened in 2007, when a businessman led a group of investors who paid for The Tribune Holding. Perhaps this is how Sam Zell decided to repeat the fate of Warren Buffet. The Tribune group of companies looked attractive: its structure included websites such as Cars.com. Separately, 25 TV stations and 9 newspapers should be mentioned.
But everything went wrong. The global financial crisis hit the ground running, and in 2008 the Tribune Holding reported bankruptcy. Its procedure ended only in 2012 after 4 years of litigation. 300 million dollars – that’s the amount of the billionaire’s fortune decreased.
After that, the investor bypasses the media. When Amazon founder Jeff Bezos bought the Washington Post, Sam Zell only laughed, telling his colleague that the media is not an asset, and the media buyer only rents it.
In any case, investing in gold was the right choice for the billionaire. According to forecasts, the market for precious metals will grow rapidly in 2019, as the global economy begins to storm, and diversify the risks necessary.