I was wondering how Billionaires store all their money. I don't suppose banks can carry hundreds of billions of dollars and I don't think the peopel would be dumb enough to leave billions of dollars in their house. Anyone got anything that can answer this question?
First, Billionaires are estimated, not actual. Unlike you and me, you don't add up what's in their bank account and subtract what they owe on their credit cards to get net worth.
Warren Buffett isn't a billionaire because he has lots of money. He is a billionaire because he owns hundreds of thousands of shares of Berkshire Hathaway Inc stock. You get to billions by multiplying the current stock price by his number of shares...but he doesn't have billions of dollars...he has hundreds of thousands of shares.
Most of the mega rich ($100 million plus) have similar calculations to determine their net worth.
Second, the mega rich have special services that cater to big money: private banks, hedge funds, family management services, brokerage firms, mutual funds, and boutique wealth management companies. What they do with the money is similar: Stocks, bonds, cash, commodities, etc with a few twists, but the main difference is the way it is handled.
They can't buy cd's - since only the frist 250,000 is insured.
They could spread it out in 500 different banks - but that would be near impossible.
They buy corporate bonds.
They buy 40 year treasuries.
They buy gold securies.
They buy stocks that earn dividends.
/
I would imagine they have their money in several different banks. Also, they would invest wisely.
It is just a number on his bank balance