/biz/ - Business & Finance

>>57698841
Gold hasn't been a good hedge against inflation. That's a common misconception.

Arguably, it's been a decent hedge against inflation over extremely long time periods, like centuries. But most investors are thinking about a few years or decades.

>>56385484
Stocks are good at beating inflation over many years, but not in the short term. Commodities seem to be better at that.

You can also look into inflation-linked bonds, like Treasury Inflation-Protected Securities in the US. Series I Savings Bonds might be interesting too.

>beat inflation
>increase wealth over long run
Stocks are great for these. Stocks don't do well against short-term inflation, but they do very well against long-term inflation.

>secure their wealth
Historically, wealthy families used diversification and political protection to achieve this.

The founder of the Rothschild dynasty sent his sons to different countries - Frankfurt, London, Paris, Vienna. It seems like he was spreading the business across multiple jurisdictions so it would be more resilient to political problems.

The Medici family used its wealth to marry into noble families and became recognized as nobles (Duke of Florence, Grand Duke of Tuscany, etc.). These strategies gave it political clout, making it harder for others to confiscate its wealth.

>Do they invest in properties, stocks, funds, bonds or a combination of all?
Probably a combination of all. The wealth of British noble families was mostly in land and government bonds ("consols"). The centuries-old Grosvenor fortune is based on real estate. Generational wealth based on a family business (e.g. Ford, Cargill, Walmart) is naturally based on stock.

>>54162930