Jordan Belfort, also known as “The Wolf of Wall Street,” is notorious for his involvement in disreputable companies and securities fraud schemes. However, in a recent interview on “The Tucker Carlson Encounter,” Belfort surprisingly shared some conservative financial strategies for building personal wealth.
Belfort cautioned individual investors against relying on “experts,” which he believes includes Tiktok gurus, money managers, financial analysts, and TV hosts. He advised investors to ignore these so-called experts, especially Jim Cramer, the former Fox News host.
According to Belfort, following buy and sell signals from experts or investing in actively managed mutual funds often leads to unnecessary fees, commissions, and increased tax liability. Instead, he recommended a more passive approach to investing. Belfort advised investors to buy and hold high-quality stocks for long periods of time, reinvest quarterly dividends, and rely on compounding growth.
Belfort also warned against selecting individual stocks or trying to time the market. He emphasized that the majority of people, including professional analysts, are terrible at predicting market moves. “Human beings, by our nature, are crappy stock pickers, and when you try to pick individual stocks, you tend to lose most of the time,” he said.
Instead, Belfort suggested investing in ETFs that track the S&P 500 index, such as the SPDR S&P 500 (SPY). He believes this is one of the most efficient ways for individuals to access consistently profitable companies.
To manage risk, Belfort advised diversifying investment portfolios with bond funds. However, he cautioned against trying to predict which bonds would offer the best returns. He highlighted that investors would be trading against bond professionals who are highly skilled in beating the market.
Belfort acknowledged that his advice would have been different in his younger days when he promoted active investing. He stressed the importance of passive investing, which is the opposite of what he advocated back then.
The advice from Jordan Belfort holds significance as it challenges the traditional approach to investing. By urging investors to ignore experts and adopt a passive investing strategy, Belfort emphasizes the importance of long-term thinking and avoiding unnecessary fees and commissions.
While Belfort’s past actions may overshadow his current financial advice, his insights into building personal wealth through conservative strategies should not be dismissed. It is always important for investors to conduct thorough research and make informed decisions based on their individual financial goals and risk tolerance.
As with any investment strategy, it is recommended to consult with a financial advisor before making any significant financial decisions.
