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Recently, Wealth-X expanded its data collection methods and reach by joining forces with renowned international leaders, such as Swiss-based financial services firm UBS, and real estate brand Sotheby\u2019s International Realty.<\/p>\n<p>Friedman recently took some time off from his busy schedule to speak with us from his home at the High Line in Manhattan, where he lives with his wife and two children.<\/p>\n<p><strong>1. Tell us a little bit about your experience before Wealth-X. Were you always interested in real estate and economics?<\/strong><\/p>\n<p>I was a dotcom and technology entrepreneur in the late 1990s in Silicon Valley. Then there was a dotcom crash and our company capsized in the crash. At the time I was also doing some consultancy for a close friend who was working at CB Richard Ellis (CBRE), and that was my first introduction to commercial real estate. CBRE had a developer\u2019s strategy \u2013 they wanted to create a high-end strategic consulting group to advise their clients not only on the brokerage side and transactions in real estate, but also on where they should be investing around the world. It was this strategy that created the opportunity for me to work for CBRE and the reason I moved to New York City.<\/p>\n<p>I became part of the group that was working with senior executives, and we started to build a consultant group at CBRE that focused on its largest commercial investors, economic development strategies and emerging strategies that related to large capital investments and deployments, specifically around branding and positioning to attract high-growth entities like technology companies.<\/p>\n<p><strong>2. There are already a number of research firms that deal with the world\u2019s wealth. What then inspired you to form Wealth-X?<\/strong><\/p>\n<p>Most brands are looking for great content. In fact, they are essentially becoming publishers, and to engage their audience they need great content. This is where we come in.<\/p>\n<p>One of the great things about Wealth-X is that we have proprietary data, and it\u2019s data that we\u2019ve created and collected ourselves and manually curated using open source intelligence. That data is a foundation for creating fantastic content on the UHNW market. We can take that data and work with our clients and partners to create really unique and insightful content because, you know, \u2018content is the new black\u2019.<\/p>\n<p><strong>3. You recently teamed up with Sotheby\u2019s International Realty to produce a global luxury residential report earlier this year. How did this collaboration come about?<\/strong><\/p>\n<p>We partner with industry leaders in different sectors to develop very insightful and unique content driven by the proprietary nature of our data. We\u2019ve done this with several different partners: our UHNW report with UBS; our report with a leader in the life insurance sector, NFP; we also did a report about the largest wealth transfer in history; and in the residential luxury real estate sector, we partnered with Sotheby\u2019s.<\/p>\n<p>We\u2019re excited about the joint report with Sotheby\u2019s because it\u2019s the first and only report that targets and deals exclusively with the UHNW world and owner-occupied real estate. Most reports on luxury real estate usually expand the gamut in terms of looking at investments, asset classes and all these different things about developments, but our report was really unique; it\u2019s the only report that is solely focused on the intersection of UHNW individuals and their owner-occupied luxury real estate.<\/p>\n<figure id=\"attachment_2125\" aria-describedby=\"caption-attachment-2125\" style=\"width: 740px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"size-full wp-image-2125\" src=\"http:\/\/pgawards.wpengine.com\/wp-content\/uploads\/2019\/03\/1529063930473_Indonesia.png\" alt=\"\" width=\"740\" height=\"494\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2019\/03\/1529063930473_Indonesia.png 740w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2019\/03\/1529063930473_Indonesia-300x200.png 300w\" sizes=\"(max-width: 740px) 100vw, 740px\" \/><figcaption id=\"caption-attachment-2125\" class=\"wp-caption-text\">Indonesia<\/figcaption><\/figure>\n<p>Indonesia is on track to become a UHNW haven in the future, per a Wealth-X study<\/p>\n<p><strong>4. A key finding in the report is that the world\u2019s wealth seems to be shifting to Asia. What are the main factors behind this shift?<\/strong><\/p>\n<p>It\u2019s interesting because there\u2019s a bit of a paradox going on here. There has indeed been tremendous wealth creation in Asia, but, according to recent press, most of the luxury brands are actually viewing America as the new emerging market in luxury. In fact, many of the largest spenders \u2013 if you will \u2013 in luxury have declined and there\u2019s been a muting of luxury buying in China. This means that many high-end brands are looking elsewhere, like the United States. People would have never thought Chicago would rank ninth in terms of UHNWIs globally, right? So, yes, there\u2019s tremendous growth and we see trends. For example, I was in Hong Kong and there were stories of young Chinese teenagers spending hundreds of thousands of dollars [on luxury goods&gt;. You hear these stories and there\u2019s now substantial data to back them up, so there\u2019s a mass growth in Asia. But in the short-term, luxury real estate companies and luxury brands continue to look to the US.<\/p>\n<p>[pullquote&gt; We can take that data and work with our clients and partners to create really unique and insightful content because, you know, \u2018content is the new black\u2019. [\/pullquote&gt;<\/p>\n<p><strong>5. Were there any other interesting institutional findings from this collaboration?<\/strong><\/p>\n<p>We discovered that the top industry for UHNWIs globally is finance, banking and investment, which accounts for 22.3 percent. Real estate is the second most significant industry at 7.2 percent, just ahead of non-profits at 7 percent. Furthermore, women&#8217;s preference for more tangible assets\u00a0and, in general, a lower risk tolerance explains why they value real estate more than men. We believe that there\u2019s no reason why it should not be equal in the future, but it could take some time for this to be the case. For example, if female UHNWIs were to increase in number every year at a\u00a010 percent rate, and male UHNWIs were to experience zero growth, it would still take until 2034 before the numbers are equal.<\/p>\n<p><strong>6. Do you agree with some experts that technology also influences the growth of some luxury markets, like in Bangalore and Malaysia?<\/strong><\/p>\n<p>The technology sector is only ever going to increase in the future, although it is still most significant in the US. The effects of the technology industry on luxury in developing markets is therefore having a small, but growing impact. We will need more companies like\u00a0Alibaba [a Chinese e-commerce website&gt;\u00a0to be created before the impact is significant.<\/p>\n<p>&nbsp;<\/p>\n<figure id=\"attachment_2126\" aria-describedby=\"caption-attachment-2126\" style=\"width: 740px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"size-full wp-image-2126\" src=\"http:\/\/pgawards.wpengine.com\/wp-content\/uploads\/2019\/03\/1529063931662_Chicago.png\" alt=\"\" width=\"740\" height=\"477\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2019\/03\/1529063931662_Chicago.png 740w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2019\/03\/1529063931662_Chicago-300x193.png 300w\" sizes=\"(max-width: 740px) 100vw, 740px\" \/><figcaption id=\"caption-attachment-2126\" class=\"wp-caption-text\">Chicago<\/figcaption><\/figure>\n<p>Ranked ninth in the global UHNW index, Chicago has no reason to be blue<\/p>\n<p><strong>7. Despite the volatility of some markets, why does real estate remain a solid investment for any UHNW individual?<\/strong><\/p>\n<p>Real estate is a hard asset, which makes it relatively\u00a0more secure than other investments. It\u2019s also an investment that can be enjoyed today. While the value of\u00a0super yachts and luxury cars\u00a0will depreciate; there is, arguably, little\u00a0pleasure to be\u00a0derived from looking at your holdings as stocks and shares. That&#8217;s why\u00a0real estate is\u00a0a popular investment\u00a0choice for UHNWIs.<\/p>\n<p><strong>8. Aside from the Chinese, which emerging Asian nationalities should we watch out for?<\/strong><\/p>\n<p>There are lots of potential in Southeast Asia to improve rapidly.\u00a0Indonesia is a growing economic force that will help create many more UHNWIs, and Myanmar presents a large opportunity for fortunes to be created with the economy continuing to open up. Overall in the near-term, it is still likely that China will drive the\u00a0growth of UHNWIs in Asia in the next five years.<\/p>\n<p><strong>9. Speaking of expanding in Asia, if you were to buy a luxury condo here, where would it be, and why?<\/strong><\/p>\n<p>Singapore in my mind seems to be more like San Francisco, whereas Hong Kong tends to be more like New York. It really depends on a lot of different factors. At this stage in my life \u2013 I now have my own family and kids \u2013 I\u2019d probably opt for Singapore. If I were younger, I\u2019d probably live in Hong Kong where there\u2019s lots of vitality and activity going on.<\/p>\n<p><strong>10. Being the president of a company that deals with the world\u2019s wealth, what to you is \u2018luxury\u2019?<\/strong><\/p>\n<p>Well, this is an interesting question because the definition of \u201cluxury\u201d, I\u2019d say, is one of the biggest debated topics today. There are people that want to define luxury as \u2018exclusivity\u2019 \u2013 so exclusive, in fact, that no one can afford it. Some folks define it as \u2018craftsmanship\u2019. It\u2019s a word that I think would open opportunity for a debate, basically, for lots of different ideas\u2026 but personally, I think about luxury as having two sides: One is you learn more about culture \u2013 the real brands of luxury have tremendous heritage and history; it\u2019s part of their corporate legacy. The other is about craftsmanship, a skill set that someone learns and they pass it on to someone else. Embedded in my own bias and personal view of the definition of luxury, it\u2019s the idea of intense craftsmanship and training. In other words, you can\u2019t just step right into it. You have to be an apprentice within a tradition in order to get to a place where you\u2019ll be able to do some of the crafts, which would exclude things that are done instantaneously. That\u2019s my own emerging definition of what \u201cluxury\u201d is. It\u2019s an ongoing debate and is certainly open to interpretation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wealth-X co-founder David Friedman shares his insights on wealth intelligence, growth strategies and chips in on the &#8216;luxury&#8217; debate<\/p>\n","protected":false},"author":2,"featured_media":19921,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[86,94],"tags":[],"class_list":["post-2123","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interview","category-views","news_author-richard-allan-aquino"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>10 things all ultra high-net-worth investors should know | Asia Property Awards<\/title>\n<meta name=\"robots\" content=\"index, follow, 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