Where do people with a really high net worth really store their money? I can’t imagine that they just store it on credit cards or in a bank.
In: Economics
In most cases they own shares in companies.
To get their net worth, look up the price on the stock market and multiply it by how many shares they have.
The result is a huge number.
Then add in the tiny amount in banks and such.
This is why you often hear “<Billionaire> lost X billion dollars in net worth when the stock market crashed”
It’s true, but when the stock recovers and they haven’t sold any of it, their net worth goes back up.
Rich people usually have their money invested in various assets – stock market, real estate, mutual funds, and such. Only a small portion of their money is readily accessible. If they want to make a big purchase, they would need to sell a (small) portion of their assets to cover the cost.
Rich people typically have most of their wealth in investments — shares of stock in companies, bonds, real estate holdings, invested with hedge funds, etc. They likely only have a small fraction in cash, checking accounts, or other means of instant access.
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