Here’s the Wild Thing Billionaires Do in a Recession That You Don’t

When the economy dips, most of us tighten our belts. We cancel subscriptions, skip lattes and start questioning our avocado habits.

But billionaires? They play by a different rulebook entirely. While the rest of us are bracing for impact, they’re quietly making moves that set them up to come out even richer on the other side.

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“The biggest benefit billionaires have is time,” said Jason Pack, chief revenue officer at Freedom Debt Relief. “They have time to wait out investments that might take years to recover, especially if they’re highly discounted. They can essentially buy undervalued assets and wait for the economy to recover — even if that’s years from now.”

Here’s a look at what the ultra-wealthy do in a recession — and how you can borrow a page from their playbook.

Andrew Lokenauth, money expert and owner of BeFluentInFinance, has noticed billionaires tend to get excited during recessions.

Which seems crazy to most people. But here’s the thing: they see market downturns as massive opportunities.

“From my experience working with high-net-worth clients, they’re basically shopping for discounts on steroids,” he said.

Last September, he watched several wealthy clients buy up commercial real estate like it was going out of style. While everyone else was panicking about their 401(k) plans, these folks were snatching up office buildings at 40% to 60% discounts.

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“It’s wild, they actually keep huge cash reserves — sometimes $100 million plus — specifically waiting for these moments,” he explained.

And according to Lokenauth, they don’t just stick to real estate. They grab chunks of distressed companies, buy massive amounts of cheap stocks and even start new businesses when everyone else is scaling back.

“The thing is, they’re playing a completely different game than the rest of us,” he added.

Lokenauth’s most honest take is that most of these strategies aren’t realistic for the average person.

“I mean, we can’t exactly keep millions in cash sitting around waiting for the next recession,” he explained

But, he said there are some smaller-scale versions that actually work pretty well.

For his part, Lokenauth has started keeping about 15% to 20% of his portfolio in cash (way more than financial advisors typically recommend). He said this gives him dry powder to buy when things go on sale.

“During the last downturn, I grabbed some solid blue-chip stocks at crazy discounts — not billions worth, but enough to make a difference in my portfolio,” he added.

The real key is having that contrarian mindset. While everyone’s running for the exits, you’re looking for opportunities. Maybe you can’t buy an office building, but he said you might be able to grab some beaten-down REITs or start a small side business when competition’s low and talented people are looking for work.

From what Lokenauth has seen, the best approach is taking the billionaire playbook and scaling it way back to where it makes sense for you.

“Keep more cash than usual — I’d say $5,000 to $10,000 minimum if possible. Look for small businesses in your area that might be struggling but have good fundamentals — maybe you can buy in or partner up.”

He noted that he personally focuses on dividend-paying stocks during recessions. “They’re usually on sale and those dividend payments feel pretty good when everything else is chaos,” he added. Plus, reinvesting those dividends when prices are low really compounds your returns.

And here’s something most people miss, according to Lokenauth — billionaires invest heavily in themselves during downturns.

They upgrade their skills, expand their networks and position themselves for the recovery. And that strategy works at any income level.

“I spent the last recession getting additional certifications while my competition was frozen in fear. Best investment I ever made,” Lokenauth said.

The bottom line is this: you don’t need billions to think like a billionaire. But you do need to flip your perspective.

In fact, Psychology Today released an article that said shifting your perspective from short-term losses to long-term gains can help reduce panic. Recessions aren’t just survival modes — they’re opportunities. “You just gotta scale the strategy to fit your situation,” Lokenauth added.

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This article originally appeared on GOBankingRates.com: Here’s the Wild Thing Billionaires Do in a Recession That You Don’t