Tony Robbins says the US Congress has quietly opened a door that America’s super-rich have been using for decades. Capitalize now

“Private equity has compounded … basic private equity, not like the big ones, 15.5% – so about 50% faster per year. What does that mean? The same $1 million. Instead of being worth $26 million, it’s worth $142 million”

Robbins did not cite sources for those return figures, but some research suggests that over the long haul, private equity has outperformed the S&P 500—albeit with less liquidity (4).

Ultimately, Robbins praised the broader idea behind the change, arguing that allowing more Americans to invest in private businesses would help level the playing field.

“I prefer to focus on what people can benefit from if they really want to grow at the same rate as anyone else who is very wealthy,” he said (1).

“Because the rich had it specifically for them. You couldn’t get into it before — but that’s changing. And I think that’s one of the good things Congress is doing.”

To be sure, nothing is set in stone.

The Investment Act still needs to clear the Senate and it remains unclear when a vote will take place — or whether lawmakers will approve the bill in its current form.

Still, Robbins emphasized a broader point that resonates regardless of the bill’s final outcome: Public markets show only one aspect of how wealth is created. Many of today’s largest and most successful companies have been privately held for years, growing behind the scenes and building incredible value long before the IPO bell rang.

Venture capital is where early bets are placed on future giants. But, for decades, venture capital has been one of the few tables left in finance where retail investors can’t get a seat.

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Read more: Approaching retirement with no savings? Fear not, you are not alone. Here are 6 easy ways you can catch up (and fast).

To explain his investment philosophy, Robbins recalled a conversation he had with Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund.

Robbins said he asked Dalio a simple question: What is the most important investment principle you can teach another person?

“Tony, you have to understand that all investments are risk-reward,” Dalio replied. “So the more you can reduce your risk but get the upside reward, that’s great. But there’s only one way to do it consistently without luck.”

Dalio’s answer, Robbins said, is what he calls the “holy grail” of investing: diversification into virtually unrelated assets.

“If you have eight to 12 unrelated investments … you reduce your risk by 80% and you gradually increase your upside. You have no loss in upside,” Robbins recalled Dalio saying.

The idea resonated enough that Robbins eventually decided to write a book focusing on that theory. Still, he admits that putting it into practice has become more challenging over time, because “so many things today are aligned to markets.”

Good news? Dalio continues to emphasize the importance of one particular diversification in building a flexible portfolio — one asset that still stands out: gold.

“People don’t have enough gold in their portfolios,” he told CNBC last year. “When bad times come, gold is a very effective diversification.”

Long seen as the ultimate safe haven, gold is not tied to any one country, currency or economy. It cannot be printed out of thin air like fiat money and in times of economic turmoil or geopolitical uncertainty, investors flock to it, driving up its value.

The price of gold has increased by more than 60 percent in the last 12 months.

One way to invest in gold that also offers significant tax benefits is to open a gold IRA with the help of Thor Metals.

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Prominent investors like Dalio often stress the importance of diversity—and for good reason. Many traditional assets move in tandem, especially during periods of market stress.

That message feels especially relevant today. About 40% of the S&P 500’s weighting is concentrated in its ten largest stocks, and the index’s CAPE ratio hasn’t been this high since the dot-com boom.

This is where, for many investors, alternative assets come into play. This can include everything from real estate and precious metals to private equity and collectibles.

But there’s one store of value that routinely flies under the radar: It’s rare by design, universally coveted and frequently locked up by institutions.

We’re talking about postwar and contemporary art — a category that has led the S&P 500 with a low correlation since 1995.

It’s easy to see why art pieces often fetch new heights at auction: the supply of great works of art is limited and many desirable pieces have already been snapped up by museums and collectors. That scarcity can also make art an attractive option for investors looking to diversify and preserve it over the long term.

Until recently, buying art has been a domain reserved for the ultra-rich – as in 2022 when an art collection owned by the late Microsoft co-founder Paul Allen sold at Christie’s New York for $1.5 billion, making it the most valuable collection in auction history (5).

Now, Masterworks – a platform for investing in shares of blue-chip artworks by renowned artists including Pablo Picasso, Jean-Michel Basquiat and Banksy – can help you get started with this asset class. It’s easy to use and, with 25 successful exits to date, Masterworks has distributed over $65 million in gross proceeds (including principal).

Just browse their impressive portfolio of images and choose how many shares you want to buy. Masterworks can handle all the details, making high-end art investments both accessible and effortless.

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Note that past performance is not indicative of future returns. Investment involves risk. See the disclosure of Reg A at masterworks.com/cd.

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Iced Coffee Hour (1); Congress (2); US Securities and Exchange Commission (3); McKinsey & Company (4); Christy (5)

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