We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.
Warren Buffett’s longtime business partner, the late Charlie Munger, had a reputation for being curt when speaking with shareholders.
Whether he was talking about building wealth or expressing skepticism about cryptocurrency, Munger would often speak candidly.
During a 2019 Daily Journal shareholders meeting, Munger turned his attention toward the emerging daytrading influencer market. In short, he wasn’t a fan of social media gurus teaching inexperienced investors how to trade stocks.
Don’t miss
-
Car insurance premiums in America are through the roof — and only getting worse. But 5 minutes could have you paying as little as $29/month
-
Commercial real estate has beaten the stock market for 25 years — but only the super rich could buy in. Here’s how even ordinary investors can become the landlord of Walmart, Whole Foods or Kroger
-
These 5 magic money moves will boost you up America’s net worth ladder in 2024 — and you can complete each step within minutes. Here’s how
“If you take the modern world where people are trying to teach you how to come in and trade actively in stocks, well, I regard that as roughly equivalent to trying to induce a bunch of young people to start off on heroin,” he said. “It is really stupid.”
Here’s why the legendary investor was “tired” of get-rich-quick gurus.
Financial misinformation
FInancial literacy remains a problem across the nation. According to a 2023 survey commissioned by Forbes Advisor, a whopping 79% of American millennials and Gen Zers have gotten financial advice from social media.
Munger thought it was silly “when you’re already rich to make your money by encouraging people to get rich by trading.”
“There are [also] people on TV and they say ‘I have this book that will teach you how to make 300% a year and all you have to do is pay for shipping, he told shareholders. “They mislead you on purpose and I get tired of it. I don’t think it’s right that we deliberately mislead people as much as we do.”
Bad financial advice can have tangible consequences. This is why it is cruicial to find a financial advisor you can trust — and that’s where WiserAdvisor comes in.
WiserAdvisor is an online platform that connects you with vetted financial advisors to make the process of finding the right advice easier.
Just answer a few quick questions about yourself and your finances, and the platform will match you with experienced financial professionals best suited to help you develop a plan to achieve your retirement goals. You can view the advisors’ profiles, read past client reviews, and schedule an initial consultation for free with no obligation to hire.
Read more: Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead
Safeguard your investing strategies
There’s no shortage of financial advice being shared online. But while social media personalities champion investing trends like cryptocurrency or meme stocks, both Buffett and Munger have long championed the power of passive investing.
They’ve consistently argued that most investors would struggle to beat the market, making index funds a compelling choice for the average person. In fact, since its introduction, the S&P 500 has delivered an average annual return of over 10%, according to the Official Data Foundation.
And the best weapon you could have in your arsenal as a passive, low-risk investor is patience and time. By consistently investing small amounts over a long-term horizon, you can harness the power of compound interest.
Platforms like Acorns make this strategy effortlessly accessible, allowing you to invest spare change from everyday purchases. Acorns is an automated savings and investment app that rounds up your purchase to the nearest dollar and automatically invests it, letting you grow your wealth without even thinking about it. Investing in small increments can help you save faster, without the mental load of allocating money for spending vs. investing.
Sign up now and for a limited time you’ll get a $20 bonus investment to kickstart your portfolio.
For those seeking a more hands-on approach and want to make informed trades, there are also platforms that give you the tools to build diversified portfolios beyond index funds and ETFs, while helping you equip yourself to manage risk.
For instance, tastytrade is among the premier low-cost brokerages worth considering for those who like to trade stocks actively and enjoy a suite of free trading tools to do so.
The platform was designed by experienced floor traders, who combined their decades of experience to create a “see it, click It, trade It” experience that allows investors to make trades faster and more efficiently, with an eye on maximizing profit.
With no extra charges for broker-assisted trades and a competitive margin base rate of 10%, tastytrade aims to lower margin trading costs, so you can make the most of each trade.
Right now if you open and fund account, you can receive a cash bonus to get you started.
Alternatives to stock markets
Diversifying your beyond stocks can significantly enhance its resilience and long-term growth potential.
A golden opportunity
Gold and silver offer a multifaceted approach to portfolio growth and stability. American Hartford Gold can help you open a gold IRA to aid in securing your retirement fund. Gold has long been touted as a safe haven asset during market uncertainty. Amid persistent inflation, gold prices have reached new heights, now standing at around $2,652 per ounce.
One of the country’s most trusted precious metals companies — with an A+ rating from the Better Business Bureau — American Hartford Gold has helped thousands of clients protect their retirement.
With live precious metals charts, the ability to compare gold prices with other markets, and an account representative who can answer your questions, you can feel confident that your retirement nest egg is growing the way it should.
When you sign up with American Hartford Gold, you can receive up to $15,000 in complimentary silver, along with a free investor guide to help you determine if this investment is right for you.
Real estate is rich with potential
Another popular alternative is real estate investing.
Real estate has long been considered a solid portfolio hedge, as rent and property values tend to increase with inflation. It’s no surprise that high-net-worth individuals see opportunity in this asset. Gone are the days when you needed to buy and manage the property yourself to invest in real estate.
With platforms like Arrived, for example, you can invest in shares of rental homes and vacation rentals without taking on the responsibilities of a homeowner or landlord — Arrived handles property management, tenant turnover and repairs.
Backed by world class investors like Jeff Bezos, Arrived makes it easy to fit rental properties into your investment portfolio regardless of your current income.
To get started: browse a curated selection of homes, each vetted for their appreciation and income potential. Once you find a property you like, you can choose the number of shares you want to buy and you can then start investing with just $100.
Accessible luxury asset
Fractional investing has permeated more than the stock and real estate markets — it has also opened up new avenues for investors to build wealth through art investing.
Fine art is one investment that consistently outperforms the stock market over the long term, making it an increasingly popular tangible asset. Some contemporary art has even outperformed the S&P 500 over the past few decades, delivering an annual return of 11.5% from 1995 to 2023, compared to the S&P 500’s 9.6% during the same period.
Many investors consider it an asset reserved for the top 1%, but that’s no longer the case: Masterworks is a top platform for retail and accredited investors to purchase fractional shares of blue-chip artwork by iconic artists like Picasso, Banksy and Basquiat.
Simply browse their impressive portfolio, pick the artwork you want to invest in and choose how many shares you’d like to buy. When the firm sells a piece you’ve invested in, you get a return from any net proceeds — and Masterworks does the due diligence for you, vetting each piece with industry experts, with an ultra-low acceptance rate of less than 3%.
To get started, just enter a few details about your portfolio and financial goals. Masterworks will show you a selection of available paintings. customized according to your investing preferences.
What to read next
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.