The stock market is an extraordinary wealth-making machine, and I encourage you to participate. Let me explain why.
The Stock Market Is an Extraordinary Wealth-Making Machine
Billionaires Work for You
Mark Zuckerberg spends all of his time trying to get richer and richer. He can talk to Presidents and Prime Ministers. He can hire just about anyone. He can do just about anything.
Wouldn't it be great if we could all participate in Zuck's wealth creation?
We can. That's what makes the stock market so cool.
Over 90% of Zuck's net worth is in Meta stock. That means we can all track Zuck's wealth creation percentage point by percentage point by simply buying the stock.
That's right. We buy Zuck's stock and he is working for us night and day. We just kick back and he makes money for us.
And the same is true of Jensen, Musk, and Ellison. We just buy the stock and we get the same wealth creation.
Stay in the Game
That's why I always recommend having a meaningful portion of one's portfolio in stocks. In our model portfolio we have 40% in stocks.
There are some "sky is falling" folks who shift all of their capital to gold or real estate or bitcoin. I don't recommend doing that. You can shift some of your portfolio to these assets but always keep some capital in the stock market.
The Bottom Line
The stock market lets ordinary investors ride the same wealth creation as billionaires. When you buy shares, the world's most driven entrepreneurs are working for you around the clock.
Keep a meaningful allocation in stocks. Go ahead and diversify into gold, real estate, or bitcoin if you want. But don't abandon the market entirely.
Agree?