Dave Ramsey Says He Doesn't Own a Single Stock And If Someone Handed Him One Today, He'd Sell It — 'I'm Such a Nerd, I Know the Probability'

It's no secret Dave Ramsey has strong opinions about debt—but he's just as blunt when it comes to the stock market. In an episode of "Ramsey Everyday Millionaires" show back in August, a caller from Miami asked for advice after using $50,000 worth of stocks to generate passive income. The catch? He was using covered calls, a risky strategy involving options trading.

The caller, who said he was following Ramsey's baby steps, admitted he was using his portfolio to generate about $2,000 a month. That monthly income came from selling call options—essentially making a bet that the stock price wouldn't go above a certain level. If it did, he'd be forced to sell the shares, and if it didn't, he'd pocket the premium. Ramsey didn't need long to see red flags.

Don't Miss:

• Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.26/share!
• Can you guess how many retire with a $5,000,000 nest egg? The percentage may shock you.

"I don't think you have any concept of how much risk you're taking," Ramsey told him. "You're playing dice in Vegas and you feel like you're taking no risk at all."

Ramsey warned that this kind of strategy gives a false sense of control. One missed call could turn a modest gain into a massive loss.

"$2,000 is not your worst-case scenario," he said. "Negative $10,000 is your worst-case scenario."

While some investors chase alpha or pick hot stocks, Ramsey wants none of it. "I do not own a single stock," he said. "If someone handed me one today, I would sell it."

He chalked it up to discipline—and statistics. "It's because I'm such a nerd. I know the probabilities," he explained.

Trending: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?

Instead, Ramsey leans into what he believes is a safer, more consistent approach: diversified mutual funds. His strategy is based on not trying to outsmart the professionals, and definitely not trying to time the market.

"The moment I start thinking I can do a better job than a billion-dollar mutual fund at analyzing stocks… the instant I think that is the instant I'm wrong," he said.

Ramsey even shared a personal story about losing $5,000 on a gold options trade in his 20s. It was enough to teach him a lasting lesson. He added, "I have a rule: I don't do stupid stuff two times. I only do stupid stuff once."

While many see the stock market as an opportunity for fast gains, Ramsey sees it as a trap for overconfident investors. His advice to the caller? Ditch the options, pay off the car, build an emergency fund, and start investing the boring way.

And boring, according to Ramsey, is what builds real wealth.

Read Next:

• BlackRock is calling 2025 the year of alternative assets. One firm from NYC has quietly built a group of 60,000+ investors who have all joined in on an alt asset class previously exclusive to billionaires like Bezos and Gates.
• Dogecoin millionaires are increasing – investors with $1M+ in DOGE revealed!