Prague, June 23, 2011
J&T BANKA is proud to present the results of its exclusive survey among Czech dollar millionaires. With its scope and focus, it is an absolutely unique study that brings information about the investment behavior, charitable activities and lifestyle of affluent people.
Statistically, the prototype Czech dollar millionaire is a man of 47 years. He is realistic, expecting the times to get worse and getting prepared for that. He thinks of what he will one day leave behind and has future generations on his mind too. He sponsors the future, children, education, socially weak and those who have not had such luck. He is a rational patriot, proud of the Czech Republic, favoring the brands of Kofola and Skoda. As to their professions, dollar millionaires are primarily business owners (66%), some are self-employed (15%), and only 14% of them are employees.
How would dollar millionaires invest one and ten million crowns?
A dollar millionaire considers one million crowns as a short-term investment that should be invested “now and here” in himself. 16% would spend this amount on hobbies or travelling, 10% would invest in education, in particular that of their children, and 4% in health. When not investing the million in themselves, they would recommend investing it in bank products such as term deposits (22%) or stocks (15%), unit trusts (3%) and bonds (2%).
The way dollar millionaires view an investment depends on the amount to be invested. They consider 10 million crowns to be a long-term investment that should generate more money. More than a half of the respondents (59%) would definitely invest in real property, but the property would be carefully selected. The second most frequently mentioned investment option were equities (36%) although these are clearly viewed as risky assets.
When selecting investment opportunities, dollar millionaires trust their intuition, advice from friends and acquaintances; they also consider it important to follow business and economic news in our country and abroad as well. They are slightly skeptical as to inflation. They expect the inflation rate in early 2012 to be at 3.43% (the median among the respondents was 3%). This shows that they expect the inflation to grow much faster than CNB predicts (its inflation prognosis is 2%).
Can Dollar Millionaires Help?
In terms of charity, the respondents are clear patriots – a vast majority of them (71%) contributes to charity in the Czech Republic. Their wallets experience the greatest “drain” after natural catastrophes (26%) and for the sake of children, whether those without a home or in need of education. Since the average dollar millionaire has already reached the middle age, their support of senior citizens tends to grow. It is surprising that they are willing to donate fairly little to environment protection and ecology.
The Rich and Their Brands
Our survey has shown that dollar millionaires like brands more for their quality and reliability than for their style or glamour. If a Czech brand shows a quality equal to a foreign one, they are happy to support it. Speaking of Czech brands, the respondents prefer long-established brands with tradition and those that have earned a market foothold abroad. In short, brands with a story behind, such as Bata. However, even the Czech millionaire cannot resist being nostalgic and likes to go back to the years of his youth when kofola was the prevailing drink among the young. It is this drink brand that has with several lengths won among the Czech brands. Other favored Czech brands traditionally include Pilsner Urquell, Škoda (although only 3% of the respondents have a favorite car of this make) and Becherovka.
About the survey:
Conducted between March and May 2011, the survey was performed by J&T Banka in cooperation with the Perfect Crowd research agency. The survey aimed to map the investment behavior and lifestyle of Czech dollar millionaires, i.e. those whose disposable assets are worth at least CZK 18 million. A total of 106 respondents from among dollar millionaires participated in the survey. Data was collected by means of questionnaires and individual in-depth interviews. The qualitative view was complemented with a group discussion with J&T Banka’s private bankers.