Scott Galloway Says Young Men Think They Can Beat The Market—Urges 30% Stock Picks, 70% Index Funds, And Gamified Budgeting Instead

On his The Prof G Pod podcast, NYU professor and entrepreneur Scott Galloway called out what he views as a common flaw among young people—especially young men.

What Happened: “Every young person, especially young men, is under the impression they’re smarter than they are and that they can beat the market,” Galloway said. He then went on to outline a realistic roadmap for building long-term wealth based on a practical approach to investing.

Galloway suggested that those starting out should put 30% of their funds into individual stocks like Starbucks Corp., NVIDIA Corp., Unilever, or Novo Nordisk.

The remaining money, according to Galloway, should be put into index funds. "The marvelous thing about the human race is we become more productive… and Western economies, generally speaking, are up and to the right," Galloway explained.

He also encouraged young people to find and develop a skill with a 90% plus employment rate and recommended that they should practice stoicism by accepting what's out of their control and focusing on what is.

"One thing that is within your control is spending," Galloway said. He reminisced about living on just $78 a week, including rent, during a summer break, competing with five fraternity brothers to spend the least. By gamifying spending, Galloway suggested, the habit can be integrated into daily life.

See Also: 16-Year-Old Making $50K Per Month Doesn’t Want To Tell His Mom – Dave Ramsey Says, ‘If You Were My Son…I Would Say Have At It, Dude’

Why It Matters: Galloway's guidelines mirror the advice shared by notable figures like Berkshire Hathaway CEO Warren Buffett and former Vice Chairman Charlie Munger. Buffett has always recommended starting young when it comes to investing. Charlie Munger shared similar advice about making one's first $100,000. Munger had also spoken about "soldiering through" life's ups and downs with an attitude much like the stoic approach endorsed by Galloway.  

In another podcast appearance, Galloway shared that he views real estate as one of the top investments because of its tax advantages and cash flow. This too, is similar to the advice Buffett doled out to young investors in 2012.

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