Skip to content
  • About
  • Contact
  • Contribute
  • Book
  • Careers
  • Podcast
  • Recommended
  • Speaking
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking

One unexpected way physicians invest like billionaires (and how you can too)

Masterworks
Finance
October 31, 2021
86 Shares
Share
Tweet
Share

This article is sponsored by Masterworks, the art investment platform.

Updated March 15, 2022.

The Power Law dictates that 1% of the world’s population holds 45% of the wealth.

And they’re only getting richer thanks to the rise of consumer technology during the global health situation.

In fact, the total net worth held by millionaires and billionaires grew by 61% during the pandemic—a staggering $3.9 trillion, according to Business Insider.

Despite above-average pay, 50% of American physicians aren’t millionaires. What most people don’t realize is that with the right moves, achieving millionaire status isn’t a matter of if, but when.

As long as you have an internet connection, you’ve got everything you need to be on your way to seven figures.

To break the million-dollar mark you need to invest like the rich. And there’s one place they’re all investing that most people overlook, alternatives.

Millionaires invest 30% of their wealth in alternative assets on average. One of their favorites? Art.

You might be wondering, why art? Well, the “0.1% of the 0.1%” have used art to grow their fortunes and increase their status for centuries.

Jeff Bezos, Bill Gates, and Oprah Winfrey have built collections valued in the hundreds of millions. And before them, the Rockefellers amassed the world’s most valuable art collection ever sold—a staggering $835M.

And while that’s incredible, the value of art is only growing. Accounting firm, Deloitte, estimates the wealth held in art will increase by $1 trillion in less than five years.

Now, the super-rich are pouring more money into art than ever before. Here are a few key reasons why.

Consistent performance

Not many people ever talk about art as a financial asset. You’d probably think of it as something to make your waiting room look nicer, but art has quietly outperformed other asset classes.

For example, a Basquiat painting, which was originally purchased for $19,000, recently fetched $110,500,000 at auction. That’s a 5,814% gross return on investment. You don’t need a PhD from Harvard to know that’s pretty good.

Contemporary art has also outperformed the S&P 500 by nearly 3 fold from 1995-2021. That’s a huge difference … especially in the record bull market we all witnessed. On average, it appreciates in value by 14.1% annually. This alone makes art potentially a great addition to any investor’s portfolio.

Absolutely massive asset class

There’s a reason why experts call art to be the largest asset class to never be securitized. And with $64 billion in art traded every year, and the global art market expected to be worth over $2.7 by 2026, there’s a reason for that. And that’s not all.

Art has no correlation with the broader stock market according to Citi. Being uncorrelated to stocks makes art a useful hedge against market volatility.

That’s allowed art to trounce other conventional “safety hedge” investments like gold and real estate. Paintings go up in value even when the stock market crashes, making it a good diversification for an investment portfolio.

It’s no coincidence that 85% of wealth managers believe that art should be offered to clients.

Becoming an art investor

With some paintings selling for tens of millions, previously you’d need at least $100M to build a properly diversified portfolio of art. But there’s a little-known — and incredibly smart way — for everyday people like you and I to invest in contemporary. One that allows you to participate at a fraction of the cost.

It’s all thanks to Masterworks, the art investment platform. They’ve recently opened the doors to this exciting multi-trillion-dollar asset class. Masterworks makes million-dollar paintings investible the same way you can buy a company’s stock. Instead of buying a single painting, you can invest in shares of individual works.

How it works

Masterworks has an industry-leading research team that does extensive data analysis to find the right masterpiece for investors. Then, they will buy a piece of art, and register it with the SEC, sort of like investment banks take companies public.

After that, you can buy fractional shares representing an investment in that painting. This is all done securely on their platform. Masterworks holds the piece until it appreciates, and when they sell, you get a prorated portion of the profit. It’s that simple. And you have the option to sell your shares on their secondary market at any time if you’d like as well.

Since 2017, Masterworks has resold three offerings in total with each netting over 30% annualized IRR to investors.

Now, Masterworks has securitized over $500 million dollars worth of art, and over 350,000 investors have signed up.

And what’s more incredible is the fact they already secured a valuation of over $1 billion.

We partnered with Masterworks to give our readers priority access to their offerings. Click this link to skip their waitlist and invest in multimillion-dollar paintings today.

Masterworks is the first platform for buying and selling shares representing an investment in iconic artworks. Build a diversified portfolio of expertly-vetted works curated by our industry-leading research team. Please review Masterworks’ disclosures.

Image credit: Masterworks

Prev

Tackling racial disparities in cancer care by creating new ways for institutions to operate

October 31, 2021 Kevin 0
…
Next

Family meals' surprising power [PODCAST]

October 31, 2021 Kevin 0
…

Tagged as: Practice Management

Post navigation

< Previous Post
Tackling racial disparities in cancer care by creating new ways for institutions to operate
Next Post >
Family meals' surprising power [PODCAST]

More by Masterworks

  • The “Blue Zone” asset: This unconventional asset is found in some of the world’s healthiest portfolios

    Masterworks
  • The “Physician’s Gambit”: an unconventional, but effective wealth preservation play for 2022

    Masterworks
  • The estimated $1.7 trillion legacy asset Jeff Bezos loves. (Physicians can easily diversify their portfolio with this.)

    Masterworks

Related Posts

  • Are patients using social media to attack physicians?

    David R. Stukus, MD
  • The risk physicians take when going on social media

    Anonymous
  • Beware of pseudoscience: The desperate need for physicians on social media

    Valerie A. Jones, MD
  • When physicians are cyberbullied: an interview with ZDoggMD

    Monique Tello, MD
  • Surprising and unlikely rewards of social media engagement by physicians

    Lisa Chan, MD
  • Physicians who don’t play the social media game may be left behind

    Xrayvsn, MD

More in Finance

  • Secure your future today: the essential guide to disability and life insurance for physicians and professionals

    Set for Life Insurance & The Podcast by KevinMD
  • A tiny step to reduce physician burnout

    Dennis Hursh, Esq
  • Why a business education is essential for financial stability and cutting-edge medical care

    Curtis G. Graham, MD
  • The myth of wealthy doctors: Why business education is vital for every physician

    Randall S. Fong, MD
  • Revolutionizing health care: lessons from Michael Jordan’s partnership with Nike

    Chris Grant
  • Mastering the art of transition: essential tips for leaving your medical career behind and pursuing a new path

    Amanda Hill, JD

More in Sponsored

  • The pros and cons of taking a gap year during medical school

    Med School Insiders
  • Secure your future today: the essential guide to disability and life insurance for physicians and professionals

    Set for Life Insurance & The Podcast by KevinMD
  • The “Blue Zone” asset: This unconventional asset is found in some of the world’s healthiest portfolios

    Masterworks
  • A better future in migraine management: the essential role of primary care

    Bradley Torphy, MD
  • Contract Diagnostics is the only firm 100 percent dedicated to physician contract reviews

    Contract Diagnostics
  • Reducing burnout and improving patient care with ambient clinical intelligence

    Nuance Communications & The Podcast by KevinMD
  • Most Popular

  • Past Week

    • The power of coaching for physicians: transforming thoughts, changing lives

      Kim Downey, PT | Conditions
    • The hidden factor in physician burnout: How the climate crisis is contributing to the erosion of well-being

      Elizabeth Cerceo, MD | Physician
    • Why affirmative action is crucial for health equity and social justice in medicine

      Katrina Gipson, MD, MPH | Policy
    • Unlocking the secrets of cancer conferences: an end-of-life counselor’s journey among pharmaceutical giants

      Althea Halchuck, EJD | Conditions
    • Why doctors aren’t to blame for the U.S. opioid crisis [PODCAST]

      The Podcast by KevinMD | Podcast
    • Nose-brain connection: The surprising link between allergies and mental health revealed

      Kara Wada, MD | Conditions
  • Past 6 Months

    • It’s time to replace the 0 to 10 pain intensity scale with a better measure

      Mark Sullivan, MD and Jane Ballantyne, MD | Conditions
    • “Is your surgeon really skilled? The hidden threat to public safety in medicine.

      Gene Uzawa Dorio, MD | Physician
    • Breaking point: the 5 reasons American doctors are dreaming of walking away from medicine

      Amol Shrikhande, MD | Physician
    • Revolutionize your practice: the value-based care model that reduces physician burnout

      Chandravadan Patel, MD | Physician
    • Unveiling the hidden damage: the secretive world of medical boards

      Alan Lindemann, MD | Physician
    • Breaking the cycle of racism in health care: a call for anti-racist action

      Tomi Mitchell, MD | Policy
  • Recent Posts

    • Medical errors and the power of apologies [PODCAST]

      The Podcast by KevinMD | Podcast
    • Finding your ideal work-life balance: tips for prioritizing personal life and achieving professional success

      Zahid Awan, MD | Physician
    • Boxing legends Tyson and Foreman: powerful lessons for a resilient and evolving health care future

      Harvey Castro, MD, MBA | Physician
    • 7 ways to beat burnout: a guide for health care professionals to reduce stress and reclaim their passion

      Marie Livesey, DO | Physician
    • The unjust reality of racial disparities in pediatric kidney transplants

      Lien Morcate | Conditions
    • The pros and cons of taking a gap year during medical school

      Med School Insiders | Education, Sponsored

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

Leave a Comment

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

CME Spotlights

From MedPage Today

Latest News

  • Long COVID Cognitive, Depressive Symptoms Tied to Brain Inflammation Marker
  • 'Practice Changing' Trial on Activity Recs After Prolapse Surgery
  • What's With the Buzz Around NAD+ Injections?
  • Standing, Walking After Major Surgery Tied to Less Risk of Post-Op Complications
  • Tenapanor Improves Abdominal Symptoms in Patients With IBS-C

Meeting Coverage

  • Tenapanor Improves Abdominal Symptoms in Patients With IBS-C
  • Benefits Found for Hand OA Drug Treatments
  • MRI-Based Screening May Detect Prostate Cancer Earlier
  • New Model Aims to Study Intestinal Fibrosis in Crohn's Disease
  • Hypertension Tied to Worse Survival After Surgery for Upper Tract Urothelial Cancers
  • Most Popular

  • Past Week

    • The power of coaching for physicians: transforming thoughts, changing lives

      Kim Downey, PT | Conditions
    • The hidden factor in physician burnout: How the climate crisis is contributing to the erosion of well-being

      Elizabeth Cerceo, MD | Physician
    • Why affirmative action is crucial for health equity and social justice in medicine

      Katrina Gipson, MD, MPH | Policy
    • Unlocking the secrets of cancer conferences: an end-of-life counselor’s journey among pharmaceutical giants

      Althea Halchuck, EJD | Conditions
    • Why doctors aren’t to blame for the U.S. opioid crisis [PODCAST]

      The Podcast by KevinMD | Podcast
    • Nose-brain connection: The surprising link between allergies and mental health revealed

      Kara Wada, MD | Conditions
  • Past 6 Months

    • It’s time to replace the 0 to 10 pain intensity scale with a better measure

      Mark Sullivan, MD and Jane Ballantyne, MD | Conditions
    • “Is your surgeon really skilled? The hidden threat to public safety in medicine.

      Gene Uzawa Dorio, MD | Physician
    • Breaking point: the 5 reasons American doctors are dreaming of walking away from medicine

      Amol Shrikhande, MD | Physician
    • Revolutionize your practice: the value-based care model that reduces physician burnout

      Chandravadan Patel, MD | Physician
    • Unveiling the hidden damage: the secretive world of medical boards

      Alan Lindemann, MD | Physician
    • Breaking the cycle of racism in health care: a call for anti-racist action

      Tomi Mitchell, MD | Policy
  • Recent Posts

    • Medical errors and the power of apologies [PODCAST]

      The Podcast by KevinMD | Podcast
    • Finding your ideal work-life balance: tips for prioritizing personal life and achieving professional success

      Zahid Awan, MD | Physician
    • Boxing legends Tyson and Foreman: powerful lessons for a resilient and evolving health care future

      Harvey Castro, MD, MBA | Physician
    • 7 ways to beat burnout: a guide for health care professionals to reduce stress and reclaim their passion

      Marie Livesey, DO | Physician
    • The unjust reality of racial disparities in pediatric kidney transplants

      Lien Morcate | Conditions
    • The pros and cons of taking a gap year during medical school

      Med School Insiders | Education, Sponsored

MedPage Today Professional

An Everyday Health Property Medpage Today
  • Terms of Use | Disclaimer
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

Leave a Comment

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...