Peter Cohan writes about the investment choices of the rich. In his article, he focuses on the Goldman Sachs Group (GS), which is a bank holding company which engages in securities dealing, investment banking, and investment management, among other financial services.
He provides three of “Goldman picks” that an ordinary investor cannot probably afford:
Secondary market interests in private equity firms. Goldman is able to acquire (at a discount) previously “illiquid interests” in private equity firms from limited partners who decide to sell. Goldman projects that on these, investors are able to earn returns “in excess of 20 percent.”
Customized market index securities. Goldman has created customizes securities that can accurately track market indexes. It believes that these market index securities are good investments as well.
Hedge funds. Goldman is very strict in screening the hedge funds in which their clients can invest. It has two conditions to be met: Hedge fund portfolio managers have “almost their entire net worth” in their funds, and that the funds should be “seeking significant capital appreciation.”
Source: Daily Finance
