When it comes to how super-rich people invest, there are a lot of moving parts. But it is triggered way simpler than you think. If you want to get money from some of them to fund your idea, you will find this insightful. And if you are just reading for the sake of curiosity or to prepare for your future in some way, this is good for you. This is how the rich 1% invest.

1. They have their own investment companies

The first thing you should note about super-rich people is that they don’t invest from their cash flow or savings like regular people do. Instead, they set up their own investment companies.

One of the ways to know someone rich to this level is this — they have their own charity and their own investment company. So, if they want to invest, they don’t “put their hands into their pocket and hand you a pile of money”. Instead, you have to present something worth consideration from their investment company.

Super-rich people invest with their registered investment entity. This is the first thing you have to understand.

2. They invest in the proven

So, these are the kinds of people that invest in Warren Buffett’s Berkshire Hathaway. They put the bulk of their money in funds and fund managers that have proven themselves over the years.

The reason is very simple. At this stage, these people are not preoccupied with making more money. Their main focus is not losing the money they have.

This is why the bulk of their money always goes to the proven. Any attempt you make to try to dissuade them from sending money to the proven will fail. Also, when pitching these people, you don’t try to get them excited about how much money they will make. They have passed that stage. It won’t appeal to them.

They only care about how safe their money will be.

3. They don’t like isolation

Unless they are professional investors that do seed-stage investing, these people will never be the first to invest in your idea or business. If they don’t see 2 or 3 investment companies that make them feel like they are in the right company, they won’t invest.

So, you can say that they invest to be among. They don’t like isolation. So, if they are going to be isolated, don’t go to them yet. Even if they are terrific friends that you feel they won’t say NO to you, don’t pitch them until you have some cool names that they will love to be among.

The idea is not about giving them a reason to say yes. The idea is about eliminating all the potential reasons for a no.

4. They believe in personal trust

If they have a reason to distrust your person, you lose. Some of them have tests that they take anyone who wants their money through. And those tests may sound silly. But if you fail them, you won’t get the money.

Some go to the bar for a drinking contest. Some offer food and watch how you eat. Some would invite you to the golf course and see how you play. There are all kinds of tests these people have.

You don’t have to know what the exact test is, and what they are testing for. Just don’t get too relaxed and do something ridiculous. Even if they have already agreed to give you the money.

Sometimes you fail their test because that is just you being you. And that is okay. It is better to be true to yourself and fail a silly test than to pretend to be who you aren’t just because you want money.

5. They always make a final check with their banker, lawyer, adviser, etc.

You have not gotten the money until the money lands in your bank account. They will always make a final check with someone. And smart people always look to impress that “someone” before the final stage.

Yes, you may not know that person, but you can do your homework so well that the person (whoever it is) will be impressed. This final check person is often a professional in the finance field. It is not like a wife or concubine somewhere. If they have to make a check with people like wife or concubine, it is at the early stages.

The final check can even be feedback from a private investigator. If you fail the final check, the first sign you notice is — delay. If you ask for the reason for the delay and you get a fancy excuse, you failed the final check. To avoid wasting your time, just go explore other options. If you sit there trying to resolve the situation, you would waste your time.

The best way to make a comeback after you fail this final check is you go somewhere else to raise the money and start getting results. When they see that you are already becoming successful without them, they become eager to jump in with you.

Conclusion

Everybody has their peculiarities. It is not worth it trying to please people because you want their money (regardless of how much they have).

All you should know is that there is someone who would love and embrace the idea of investing with you. There are thousands of multi-millionaires in the world. If one rejects you, go find another.

Cheers!