How to Protect Assets During Turbulent Times

Protecting wealth in an uncertain environment is a complex challenge. Historical experience shows that the choice of geographic location is crucial. During World War II, a Jewish family fled to France and Portugal, with the former facing misfortune and the latter managing to survive. When the Soviet Union collapsed in 1991, many citizens suffered heavy losses due to over-reliance on domestic assets.

Even in difficult situations, it is important to maintain clear judgment. In 1942, Nomura Securities foresaw Japan's potential defeat through subtle signs and timely adjusted their investment strategy, accumulating funds for post-war reconstruction. In contrast, many Jewish families in Germany in the 1930s missed the opportunity to leave due to excessive trust in the state.

Diversified investment is equally critical. Churchill once suffered losses due to over-investment in the U.S. stock market. Many wealthy German Jews faced disaster because their assets were too concentrated in their home country. In today's era, the average lifespan of large companies is getting shorter, making diversification even more necessary.

We should also be wary of the risks of "third-party custody." During World War II, the estates of Polish nobility were confiscated, and the assets of Japanese Americans were frozen. In recent years, some wealthy Russians have also had their assets frozen in Western countries. Self-custody may be safer, as some gold secretly buried during World War II was preserved.

A Jewish family's approach is worth emulating: storing part of their wealth in gold coins rather than gold bars, which facilitates payment and movement during turbulent times. However, trading gold still faces many risks during wartime, and caution is necessary.

History shows that peaceful prosperous times are short-lived, and turmoil is the norm. The wise choice is: to diversify assets, including categories, geographical locations, and custody methods; to remain vigilant and take early action before the situation worsens. Only in this way can one better protect wealth in chaotic times.