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Bill Gates does not take a defensive approach with his billion dollars of wealth.
Microsoft's founder added $ 16 billion to its net worth this year, though far in excess of $ 35 billion for charity, according to Bloomberg. That brings Gates' total wealth to $ 106 billion, the second largest wealth in the world behind Jeff Bezos on Amazon.
"We're not, you know, in a defensive position where we're mostly in the cash or something like that," Gates told Bloomberg Television on Tuesday. "The strategy used for investing is to be over 60 % in equities. "
Having 60%, in this case $ 60 billion in equities or index funds, is an aggressive investment strategy for some of Gates' wealth. According to the Campden Wealth report, the average portfolio for family offices in North America was about 32% of its assets in 201
Typically investors would be more diversified o asset classes like government bonds and real estate.
But Gates said it was "bullish" on the US and global business.
"You can make the yield not very high, but that's true of everyone asset classes, "Gates said." The years are much less than 2%, so there is clearly nothing to beat other investors out there and there are reasons to think that the absolute return for the next decade will be less than it is has been in the last few decades. "
The United States is now expanding for a decade, the longest in history.
Gates' charity work is mainly done through the Bill and Melinda Gates Foundation. The Foundation works to tackle health and education inequalities around the world, the climate crisis and World Hunger
Financial advisers warn that because a billionaire prefers a certain distribution, it does not mean that all investors should follow.
"Whether it's a billionaire, CEO or fundraiser , you need to remember that they are investing for their own ends, "said Certified Financial Planner Douglas Bonaparte, president and founder of Bone Fide Wealth in New York." You need to invest based on your own goals, your risk tolerance, and your preferences, "said Boneparth.
For example, if you are a young investor and you won't need the money for decades, you could
" You could have up to 100% equity, "says Boneparth.
Pre-retirees or retirees, on the other hand, may need to be much less invested in stocks to reduce the risk in their portfolio.
"They rely on these assets to pay for their retirement," Boneparth added.
– Sarah OBC's Brian contributed to this report.
Watch the full Bloomberg interview here .