Joseph Moore

It's actually very new advice because it used to not work.

That doesn't mean it can't work going forward.

But the way most wealthy people got wealthy was by doing something different than that.

Most of them took very strategic, highly leveraged, risky decisions.

not gambles, but they took risk on one or two or three big payouts.

And as it turns out, that's where most of their wealth comes from.

This idea, one of the things you hear a lot is diversification, right?

Diversification is how you get rich.

No, diversification is for staying rich.

So don't mistake what the rich have with what the rich did to have it.

What most of the wealthy did, and Buffett's a good example, like how he actually got wealthy was by taking some highly strategic

risks in the market that paid out in oversized ways.

And he did that with leverage.

His average leverage is $1.7 of debt to every dollar of equity, which is not at all what he would tell you to do.

And to be fair, you and I aren't Warren Buffett, right?

So there's some logic to that.

But the way people actually got wealthy in the past is not what most of the financial industry tells us to do today.

Yeah, there's three myths about real estate that you can find over and over again.

It always goes up.

Investing in it is passive.