Illiquid assets impact portfolio choices, leading to higher long-term investments.
The study looked at how including assets that can't be quickly sold affects investment choices. They found that people typically invest a small portion (2-6%) of their money in assets that can't be easily sold, like real estate. This matches what surveys and experts recommend. Also, long-term investors tend to put more money into these illiquid assets. This shows that factors other than just price risk can influence where people put their money.