Question:
Do billionaires hold their investments in a brokerage? For example, can Jeff Bezos log into his Chase brokerage and see that he owns 89,000,000 shares of Amazon, and he is worth $110,000,000,000?
Fund of funds
Fund of funds investing is an investment strategy of investing in many different funds in a portfolio instead of picking individual securities. This is usually done if a fund is large enough to invest in multiple funds as most funds have a minimum investment requirement. This also enables large funds to invest in global markets easily by simply investing in a different fund that already has the legal paperwork necessary to accomplish it. Fund of funds also has the advantage of choosing the best funds for each asset class and benefit from the best investment managers without necessarily hiring them directly. Similar to a stock portfolio, the fund of funds manages its portfolio as a whole by simply reallocating investments between funds if it needs to rebalance investments between asset classes. It can also switch between similar funds if it finds that a fund is not performing as well as it would like.
Answer and Explanation:1
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While billionaires may have self-directed investments in brokerage accounts, having billions of dollars in a brokerage account is not practical. Most...
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