A recent Fox Business article comments on the ways in which wealthy individuals tend to invest their money—drawing the attention of financial professional Federico Garza-Bueron.
New York, NY -- (ReleaseWire) -- 08/28/2012 --There is an old saying that the rich get richer and the poor get poorer—and in 21st Century America, at least the first half of that statement is true. A recent Fox Business report reveals new statistics from the Congressional Budget Office, indicating that the wealthiest Americans have actually grown a lot wealthier in the past few decades. The CBO reports that the real income of the wealthiest 1 percent of the population increased by an astonishing 275 percent between 1979 and 2007; for middle-class Americans, the increase has only been roughly 40 percent. The article and its findings have won the attention of Federico Garza-Bueron, a New York-based financial professional.
Federico Garza-Bueron has responded to the new statistics with a statement to the press, offering insight into why these economic trends exist. “One of the big factors is that wealthy Americans have access to a greater variety of investment opportunities,” he says. “When you reach a certain income level, you are technically considered an accredited investor, which means you can access hedge funds and other potentially lucrative opportunities. In other words, the wealthy actually have more tools at their disposal for increasing their own wealth.”
The financial professional goes on to say that it is not just a matter of opportunity that separates the 1 percent from everyone else. “In many ways, these wealthiest of Americans understand some of the fundamentals of investment better than the rest of us do,” Federico Garza-Bueron confirms. “It may sound silly, but it is true: They invest differently, and they invest better.”
Risk is one area in which Federico Garza-Bueron says the wealthy invest more prudently. “When you are in the 1 percent, you are less zealous about seeing your portfolio explode overnight, and more willing to see slow and steady, consistent growth,” he explains. “Less wealthy investors often take on much more risk—frankly, much more than they should. This is especially true when there is some hot new stock commodity, like Facebook was not so long ago. Investors put all of their eggs into one basket and risk too much on a single stock.”
Federico Garza-Bueron says that diversification is a related concept. “The wealthy understand how effective diversification can be in helping to manage risk,” he explains.
Ultimately, Federico Garza-Bueron says the wealthy get wealthier, in many cases, because they are smarter investors. “Seeing how the wealthy become wealthy, and how they continually grow their wealth, can provide the rest of us with some sound investment strategies,” says the financial professional.
About Federico Garza-Bueron
Federico Garza-Bueron is a New York financial professional and a long time philanthropist. He helps struggling immigrants get back their professional careers through the Upwardly Mobile project and is the event chairperson for the Columbia Business School Private Equity Committee. Besides donating his fortunes, he guides entrepreneurial ventures, restructures business and manages accounts for many wealthy clients. He holds a Bachelor’s degree from Boston College, a Master’s degree from Universidad Regiomontana in Monterrey, and an MBA from Columbia University. Currently, Federico Garza-Bueron serves as Event Co-Chair for the Private Equity Committee of Columbia Business School, as well as serving as a Board Member for the non-profit relief agency Friends In Deed.