How do family offices guide wealthy families through a market crisis?
Short answer: Paul framed the crisis as a test of plans made before markets fell. John said the virus was one of several forces affecting the economy, so his firm was holding cash while watching broader indicators.
Richard C. Wilson hosted a virtual investor discussion panel with Forest, Paul and John about large family office mandates and portfolio decisions during a crisis.
Paul on family plans
Paul said families with substantial assets should think across generations and keep to their plan during a crisis. He said decisions about risk should be considered before a crisis, so families can refer to their plan when one arrives.
John on reactive trades
John said investors shouldn't sell after events have already unfolded or buy a lot simply because the rest of a portfolio has fallen. He said his firm was not selling in that market.
John on holding cash
John said his firm was keeping the cash it already had and waiting for economic indicators and other developments. He said the virus was one of several things affecting the economy.
"The biggest thing here is just sticking to the plan"
Richard asked when clients should return to markets, but John described waiting for economic indicators without naming a trigger.
From Richard's exclusive Billionaires.com interviews
Lessons from Richard C. Wilson's one-on-one interviews, as published on each interview page.
- Anu Aga: Focus on one main cause. Her family found its giving more satisfying and impactful once it chose primary education for the underprivileged in India.
- Binod K. Chaudhary: Never chase a deal out of desperation. Stay cool and look at every part of the deal. Have your advisers and your finance team review it critically. Your counsel should review it too.
- Larry Connor: Learn from every mistake. Larry's team owns its failures and makes no excuses. They learn, change quickly, and keep getting better.
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Frequently asked questions
How do family offices guide wealthy families through a market crisis?
Paul framed the crisis as a test of plans made before markets fell. John said the virus was one of several forces affecting the economy, so his firm was holding cash while watching broader indicators.
What goals did Paul say families should consider?
Paul said families should consider intergenerational and charitable objectives, alongside investment decisions.
What planning areas did John mention?
John said his firm focused on tax and general wealth planning, including strategies for wealth transfer and selling a business.
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.