Paul Allen’s art collection just sold for a record $1.5 billion – here are 2 more ‘real’ assets that made these Microsoft billionaires even richer

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Paul Allen’s art collection just sold for a record $1.5 billion – here are 2 more ‘real’ assets that made these Microsoft billionaires even richer

2022 was a disappointing year for most assets. Stocks and bonds plummeted. Cryptocurrencies have crashed. Even traditional safe havens like gold and silver are in the red.

Still, one asset class remains attractive – at least to those who can afford it: fine art.

On Wednesday evening, the late Microsoft co-founder Paul Allen’s art collection raised a total of $1.5 billion from Christie’s New York, making it the most valuable private collection of all time.

The auction was record breaking in many ways.

“Never before have more than two paintings sold over $100 million in a single sale, but tonight we’ve seen five,” Max Carter, vice president, 20th and 21st Century Art at Christie’s, said in a statement.

“Four were masterpieces by the fathers of modernism – Cezanne, Seurat, Van Gogh and Gauguin.”

According to Allen’s wish, all proceeds from the auction will go to philanthropy. Allen passed away in 2018.

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Art as an investment

It’s easy to see why great works of art tend to be valued – even in times of economic strife. The supply is limited and many famous pieces have already been snatched by museums and collectors.

Art is also a popular way to diversify because it is a tangible physical asset with little correlation to the stock market. In fact, according to the Citi Global Art Market chart, contemporary art has outperformed the S&P 500 by 174% over the past 25 years.

According to Deloitte’s latest Art & Finance report, in 2021 85% of asset managers believed that art should be included in an asset management service.

Buying fine art from the likes of Banksy and Andy Warhol used to be an option only for the ultra-rich. But nowadays, crowdsourcing platforms also allow you to invest in iconic works of art.

real estate tycoon

Visual art was not the only thing in Allen’s portfolio. The tech billionaire also had significant real estate holdings.

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In July, it was reported that Allen’s estate had sold two apartments in New York City for $101 million. Later that month, his estate sold eight properties on Mercer Island in Lake Washington for $67 million.

Real estate has been a popular asset class of late, perhaps because it is a well-known hedge against inflation.

As the price of raw materials and labor rises, new properties are more expensive to build. And that drives up the price of existing real estate.

Well-chosen properties can offer more than just price increases. Investors also get a steady stream of rental income.

Of course, while we all love the idea of ​​collecting passive income, being a landlord also comes with its hassles, such as fixing leaky faucets and dealing with difficult tenants.

But you don’t have to be a landlord to start investing in real estate. There are plenty of real estate investment trusts (REITs) and crowdfunding platforms that can get you started on becoming a real estate tycoon.

Gates hoarded this

Allen co-founded Microsoft with his childhood friend Bill Gates. According to TBEN, Gates is currently the sixth richest person in the world with a net worth of $103.8 billion.

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As you might expect, Gates also has an art collection and a real estate portfolio. What’s even more intriguing, though, is that he’s also hoarding farmland.

Earlier this year, Gates was reported to have amassed nearly 270,000 acres of farmland in dozens of states. That makes him the largest private owner of farmland in America.

You don’t need an MBA to see the allure of farmland: markets can rise or fall, but no matter what, people still have to eat.

That makes agricultural land intrinsically valuable.

Of course, not everyone is interested in agriculture. But you can invest in farmland without getting your hands dirty.

All-in-one investment platforms that allow you to invest directly in farmland by taking a share in a farm of your choice. You earn cash income from the lease fees and the sale of crops – and any long-term valuation on top of that.

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