The late Charlie Munger once warned many modern get-rich gurus 'mislead you on purpose' — here's how he urged investors to build wealth instead

During a 2019 Daily Journal shareholders meeting, Munger turned his attention toward the emerging daytrading influencer market. In short, he wasn’t a fan of social media gurus teaching inexperienced investors how to trade stocks.

“If you take the modern world where people are trying to teach you how to come in and trade actively in stocks, well, I regard that as roughly equivalent to trying to induce a bunch of young people to start off on heroin,” he said. “It is really stupid.”

Here’s why the legendary investor was “tired” of get-rich-quick gurus.

Financial misinformation

FInancial literacy remains a problem across the nation. According to a 2023 survey commissioned by Forbes Advisor, a whopping 79% of American millennials and Gen Zers have gotten financial advice from social media.

Munger thought it was silly “when you’re already rich to make your money by encouraging people to get rich by trading."

“There are [also] people on TV and they say ‘I have this book that will teach you how to make 300% a year and all you have to do is pay for shipping, he told shareholders. “They mislead you on purpose and I get tired of it. I don’t think it’s right that we deliberately mislead people as much as we do.”

Bad financial advice can have tangible consequences. This is why it is cruicial to find a financial advisor you can trust — and that’s where WiserAdvisor comes in.

WiserAdvisor is an online platform that connects you with vetted financial advisors to make the process of finding the right advice easier.

Just answer a few quick questions about yourself and your finances, and the platform will match you with experienced financial professionals best suited to help you develop a plan to achieve your retirement goals.

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Safeguard your investing strategies

There’s no shortage of financial advice being shared online. But while social media personalities champion investing trends like cryptocurrency or meme stocks, both Buffett and Munger have long championed the power of passive investing.

They’ve consistently argued that most investors would struggle to beat the market, making index funds a compelling choice for the average person. In fact, since its introduction, the S&P 500 has delivered an average annual return of over 10%, according to the Official Data Foundation.

And the best weapon you could have in your arsenal as a passive, low-risk investor is patience and time. By consistently investing small amounts over a long-term horizon, you can harness the power of compound interest.

Platforms like Acorns make this strategy effortlessly accessible, allowing you to invest spare change from everyday purchases. Acorns is an automated savings and investment app that rounds up your purchase to the nearest dollar and automatically invests it, letting you grow your wealth without even thinking about it. Investing in small increments can help you save faster, without the mental load of allocating money for spending vs. investing.

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Alternatives to stock markets

Diversifying your beyond stocks can significantly enhance its resilience and long-term growth potential.

A golden opportunity

Gold and silver offer a multifaceted approach to portfolio growth and stability. American Hartford Gold can help you open a gold IRA to aid in securing your retirement fund. Gold has long been touted as a safe haven asset during market uncertainty. Amid persistent inflation, gold prices have reached new heights, now standing at around $2,652 per ounce.

One of the country’s most trusted precious metals companies — with an A+ rating from the Better Business Bureau — American Hartford Gold has helped thousands of clients protect their retirement.

With live precious metals charts, the ability to compare gold prices with other markets, and an account representative who can answer your questions, you can feel confident that your retirement nest egg is growing the way it should.

When you sign up with American Hartford Gold, you can receive up to $15,000 in complimentary silver, along with a free investor guide to help you determine if this investment is right for you.

Real estate is rich with potential

Another popular alternative is real estate investing.

Real estate has long been considered a solid portfolio hedge, as rent and property values tend to increase with inflation. It’s no surprise that high-net-worth individuals see opportunity in this asset. Gone are the days when you needed to buy and manage the property yourself to invest in real estate.

With platforms like Arrived, for example, you can invest in shares of rental homes and vacation rentals without taking on the responsibilities of a homeowner or landlord — Arrived handles property management, tenant turnover and repairs.