Ultra-rich Americans are dropping stocks and stockpiling historic piles of cash. Where their wealth’s going instead

Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.

High net worth individuals — typically those with $1 million or more in investable assets — held large portions of their total portfolio in cash. According to a survey conducted by Goldman Sachs, wealthy individuals park roughly 20% of their net worth in cash and cash equivalent holdings (1).

Higher market volatility and fears regarding persistently high inflation levels are a few major contributors to the shift away from equities and bonds.

Top Picks

And at least some ultra-high-net-worth individuals seem to agree. Warren Buffett’s Berkshire Hathaway holds approximately $365.5 billion in cash as of August, 2026 (2).

Another prominent name is billionaire investor and co-founder of PayPal, Peter Thiel, who sold roughly $100 million worth of Nvidia shares through his hedge fund, Thiel Macro, in the third quarter of 2025 (3).

While Nvidia’s stock price surged by nearly 35% in 2025, such moves by the ultra-wealthy spark concerns about a potential AI bubble (4). In 2026, Nvidia is up 25% year to date.

As U.S. equities grapple with uncertainties amid the ongoing tariff concerns and potential market overvaluation, cash and cash equivalents might help you hold onto your wealth in stormy weather.

Take inflation into account

Cash may be king for the ultra-wealthy, but that doesn’t mean they’re letting piles of money sit idle. Even when they hold more cash during uncertain markets, they typically look for places where that money can remain accessible while still generating a return.

That matters for everyday investors, too. With inflation hitting 3.4% in July, money sitting in a standard checking or savings account may gradually lose purchasing power if it isn’t earning enough interest (5).

That’s where a high-yield savings account or cash account can come in handy. Rather than taking on stock-market risk with money you may need in the near future, you can keep it relatively liquid while allowing it to earn a more competitive rate.

A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.

A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks, and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%.

That’s ten times the national deposit savings rate, according to the FDIC’s March report.

Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase with no expiration date or balance limit, meaning your APY could be as high as 4.30%.

With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8M FDIC Insurance eligibility through program banks.

Read More: Millionaires under 43 hold only 32% of their wealth in stocks. Here’s where their money is actually going

Better investment alternatives

The richer investors get, the more likely they are to look beyond traditional investments. The Goldman Sachs survey revealed that nearly 4 in 10 people with $1 million to $5 million in investable assets have exposure to alternative investments. For those with more than $10 million, alternatives are even more common, with 80% holding them in some form.

For those who don’t want to deal with stock market volatility, there are accessible ways to invest in alternative assets and shield yourself from a potential crash.

Diversify with gold

Gold is often viewed as a hedge against inflation, currency concerns and broader financial instability. It can also behave differently from stocks and bonds, potentially giving a diversified portfolio another source of returns when traditional markets are under pressure.

And increasingly, high-net-worth investors appear interested in having more of it. According to UBS, high-net-worth individuals held about 2% of their wealth in gold in 2025 and planned to increase that allocation to 3% in 2026 (6). That may sound modest, but moving from 2% to 3% represents a 50% increase in their gold allocation.

You don’t necessarily need millions to consider the same principle. Spreading your money across assets that respond differently to economic conditions can potentially make your portfolio more resilient.

Today, you can combine the recession-resistant properties of the precious metal with the tax advantages of an IRA by opening a gold IRA with the help of Newport Gold.

You can get free setup, shipping, and storage for up to three years with Newport Gold’s Liberty bundle. Plus, you can roll over your existing IRA or 401(k) into a precious metals IRA completely tax and penalty-free.

Even better? Newport Gold offers a streamlined buyback program with no fees, ensuring you can liquidate your holdings whenever needed, along with best-price assurance.

The best part? You can download their gold guide for free and get up to $20,000 in complimentary silver upon making a qualifying purchase.

Hedging with real estate

Another alternative option that can provide returns amidst economic turmoil is real estate.

Rental properties have long been a proven source of steady, passive income for investors. But managing properties costs time, effort and serious cash that many investors simply don’t have.

With that said, that doesn’t mean that there aren’t options for those looking to tap into real estate as an investment vehicle without the hassle of property management.

Turn your cash into rental income

Mogul lets you invest in shares of single-family rental homes nationwide.

Founded by former Goldman Sachs real estate investors, mogul handpicks the top 1% of single-family rental homes nationwide for you. This way, you can invest in institutional-quality offerings for a fraction of the usual cost — while receiving monthly rental income, real-time appreciation and tax benefits.

The team at mogul carefully vets each property, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average yearly return of 18.8%. Their cash-on-cash yields, meanwhile, average between 10% to 12% annually. With investments typically ranging between $15,000 and $40,000 per property, offerings often sell out in under three hours.

Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.

Assets billionaires love

The ultra-wealthy also have access to an investment universe that most people rarely get to see: private markets.

Instead of limiting themselves to publicly traded stocks and bonds, wealthy investors tend to diversify their portfolios into private equity, private credit, real estate, art, venture capital and other alternative investments. These investments can potentially generate returns that aren’t closely tied to the public stock market, which can be valuable when traditional assets are under pressure.

You don’t need millions in your bank account to qualify anymore. For those who meet the eligibility requirements, adding a carefully considered allocation to private markets could provide another avenue for diversification.

Willow Wealth lets you diversify beyond publicly traded stocks and bonds through private-market opportunities spanning real estate, private equity, private credit, art and litigation finance.

Minimum investments start as low as $5,000. You can select individual deals or opt for diversified funds, including funds managed by institutional firms such as Goldman Sachs, Carlyle and StepStone.

More than 500,000 members have invested over $6 billion through Willow and the platforms it has acquired.

Private investments can require long holding periods, carry higher fees and result in losses. See how Willow can put your money to work across a wider range of assets.

What To Read Next

Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.

Article Sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Goldman Sachs (1); Berkshire Hathaway (2); Reuters (3); MarketWatch (4); CNBC (5)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.