When I took the career aptitude test in high school, Instagram Influencer was not on the list of potential careers. Or maybe it was, and I don’t have what it takes.
To be fair to our guidance counselor, Shit-Talking Crypto CPA was also not one of my career options, yet here I am. I combined financial aptitude with new technology to find my place in the world.
Another thing I remember about that quiz is that every shyster in my class has potential as a “corporate salesperson.” Many of them are my good friends who owe me money I will never see.
Others combined their salesman aptitude with blockchain technology to carve out a niche. They now give “investment advice” or “hot crypto tips” instead of charging you $20 for a kegger that doesn’t exist.
Social media has made your high school con artists the least of your worries. You now have to fend off hustlers selling an investment that somehow involves finance, math, and technology simultaneously.
The dude who spent 80% of his time in high school talking about shrooms understands compound interest now? What is happening?
Look at the hot garbage that ends up on Instagram:
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You would have to be on drugs yourself to think anything about that ad is remotely reasonable. Whether you’re buying crypto or boring old stocks, you need to apply some common sense and protect yourself.
Step one is to identify if you are getting your information from somewhere you can trust. Successful investors say no to a thousand sources of information and yes to only a few. Below are a few places to avoid and what to look for if you want to take building wealth seriously.
Please Don’t Listen to:
The Media
The opening price of Netflix on January 3rd was $605. The price as I’m writing this is $197.
Stocks go up and down, and regularly, even the best investors are wrong. But seriously? Jim Cramer seems like an okay dude, but are there any consequences for his nonsensical buy-and-sell picks? I’m guessing he can still pay his mortgage(s).
The places most people receive information from don’t have skin in the game; find someone who does.
YouTube Bros
Presented without comment:
Friends and family who don’t know shit
You know that one guy in elementary school who swore he had an uncle named “Ben Dover?” This guy is back, and now he loves crypto. He made a catillion percent on this one trade that you missed out on. Then he pocketed 200 large and snagged a Lambo (which is still in the shop, but you’ll get to see it soon).
You get the point. Old guys at the racetrack look like racehorse experts, but they get the same results in the long run as we do. Take your betting advice from an active horse trainer, not an unemployed dude in Sarasota who wagers on the horse who takes the longest pee on the way out to the starting gate.
In summary, avoid anyone:
Discussing percentage returns
Making price predictions
Sweating profusely
Look for people who:
Know their limitations
Some people are born intelligent, but none are born wise. To become wise, you have to be smart enough to realize when you’ve had your ass kicked.
Investing is no different. Your wealth-building team needs to understand that outcomes are mostly unknowable, at least in the short term. Being certain of the unknown is an investing superpower, be sure it’s included in your financial plan.
Don’t promise anything
Ultimately, external forces will determine your investing success. That isn’t to say you don’t have any control, just not as much as you think.
Delivering investment performance is not a matter of picking great investments (although that doesn’t hurt). The art of investing is putting the odds in your favor at every possible turn, so you win over time. Experienced investors know this and don’t make promises to the contrary.
Show you the money
It’s not like I’m questioning your cousin’s big trade that made him $50k, but did anyone actually see it? He is on that app every five seconds; couldn’t he switch to the history tab and show you?
Somehow, the big trades from the big talkers never seem to appear. It isn’t hard to show somebody what you do with your own money.
Listening to tall tales about investing is fine when you’re talking about someone else’s money. Just don’t confuse their fantasies with your reality. Because, unlike their magic super-money, your dollars are subject to the laws of economics.
In summary, you are looking for somebody who:
Admits they have been wrong before
Doesn’t write checks their body can’t cash
Is reasonably transparent with their own portfolio
Warren Buffet once said, “investing is simple, but it’s not easy.” He also said cryptocurrency is a scam used by drug dealers and money launderers.
You don’t have to be right all the time, and neither does Warren Buffet. My only question is whether he will admit that he is wrong. If he does, I may start listening to his investment advice again.