Where should you put your money in 2021?

I've been very encouraged and thankful to see a lot of young entrepreneurs or young people in general finally get interested in investing. With everything that has happened in the last year or two years, seeing stocks go up 10x and crypto explode, we're finally getting the message that we have to get good at investing. This is a very good thing. But it opens up the question, where should you put your money? When it comes to the money that you've earned in your job or your business, is it better, safer and more profitable to put it into stocks or into crypto? Does a world exist in which crypto could completely replace the stock market in general? That's what we'll talk about in this video. And we'll talk about what I'm doing with my money in this new world. So if you're an entrepreneur or an entrepreneurial minded person, the first thing that I always recommend that somebody do with their savings is to start something on the side. And we have lots of videos about businesses that you can start on the side. But that's the first investment that I recommend for most people who are entrepreneurial or entrepreneurial minded. For everyone else, or if you've already got a business and you're saying, where do I put this cash? The question comes up over and over again, should I put it in stocks or should I put it into crypto? Both have done very well over the last several years. And a lot of people will argue that crypto is the future. So we might as well bet on that. After all, part of investing is to fund the things that will build the future. However, I want to give a word of caution on that approach. I have made the mistake as both an entrepreneur and as an investor of betting too much on the future. Now, that's a weird statement, especially coming from somebody who runs capitalism.com, the purpose of capitalism is to build the future profitably. But if you are too far ahead, meaning if you take your cash and you distribute it to things that are too far into the future, those things have a very high failure rate. A lot of people will point back to bitcoin, for example, and say, well, if you had bought bitcoin when it started, started before everybody else was in on this, you'd be a quadrillionaire right now. And they're right. That is theoretically true. But the narrative that does not get talked about is the 99 other similar projects that went belly up before anyone knew what bitcoin was. The reason why there are disproportionate returns in any Investment is because there's a high failure rate in all of the other similar projects. This is also the mentality of Silicon Valley or the mentality of venture capital. The reason why venture capitalists do what they do is because they are going to invest in 10 businesses, nine of which they know are going to go to zero, but one of which is going to go up a thousand X and it pays for all of the other failures. Entrepreneurship is a lot like this. We swing and miss at a lot of different ideas and projects and relationships and products and things that we're trying. I tell people, people that as an entrepreneur, my batting average is like a buck fifty. I'd be sent down to the minors if I was a baseball player.

For every relationship I pursue, every product I think about, every idea that I come up with, only about 10 to 15% of them are ever going to work out. But the ones that do will pay for all of the other failures and mistakes. And so, as you are looking at what to invest in, one of the things to keep in mind is not putting all of your cash into a sector that has a high failure rate. For example, right now, we don't know if Bitcoin is going to be the cryptocurrency that runs the world. It might be. It also might be Ethereum, or Ethereum could be replaced by Polygon. We don't know how this is going to play out. And for that reason, it is risky to place all of your bets into that sector. Now, of course, plenty of people make the argument they put all their money into crypto, but they distribute it over a bunch of different projects because they believe that one of them will grow enough to pay for everything else. And if you can live with that, mazel tov. But for most people, that is risky business. And the purpose of investing is to protect and to grow our wealth. As fast as it looks like, the world changes, and it does change very quickly. The pace of change is more digestible, more manageable than most people realize. So cryptocurrencies are not going to put stocks and other businesses out of the marketplace in the next few years. They might over the next decade or couple of decades, but they're not going to completely replace the stock market or traditional investments anytime soon. And even when crypto matures, I believe there will still be a place for private businesses, publicly traded companies, traditional raises. If we look at the media world, plenty of people thought that video would kill the radio star, that TikTok would kill Facebook. But the truth is that when we have A new technology when, when we have a new innovation, the marketplace in the industry tends to expand to fit all of them. There are still people to this day who read newspapers. The Internet hasn't completely killed them. Now, of course, almost all of those newspaper companies now make most of their money online. But they adapted, they didn't go away. And that's why you probably won't see crypto completely replace traditional stock market investing. You might see certain sectors or industries get replaced, especially online businesses, but you will still have a place for there to be traditional business and traditional stock market investing. I think the sweet spot for investing is to bet on the future in publicly traded companies that are available on the stock market. For example, one of the companies that I've invested in is a company called crispr. They're a gene sequencing company. They're on the forefront of the next generation of health care. It's unlikely that cryptocurrencies or any technology is going to knock them out of business because they're still an emerging technology. I think that that's a company that could theoretically 10x over the next 10 years. So when people ask me what the distribution of my wealth is between the two, I look at it as 80% into traditional investments and 20% or less into cryptocurrencies. There is an asterisk to this. There is one loophole where I will give my blessing for someone to invest more into something a little bit riskier. And that is if you have a strategic date knowledge advantage in a specific project. For example, if you are heavily involved in a certain type of decentralized finance trading platform and you believe that it is the next one, it's the one that is going to lead that sector, that is a reason to invest more heavily into that project. Investing is really run by knowledge gaps. People who understand something and where it is going better than the rest of the world have a strategic advantage in betting on that stock early or betting on that project early. So if you're a heavy user of a particular platform or cryptocurrency and you have reason to believe that it will help a certain group of people, that's where you might justify putting more of your wealth into something like that. All business, all commerce is run by customers and users who are actually getting value out of something. So if you are one of those customers or users and you're seeing the benefit and the value there, that could be reason enough for you to go heavier into something rather than putting your money into the stock market. Now, on the other side of the spectrum. Most people don't have any knowledge advantage when it comes to investing. And that's why the safest thing for most people to do is to just buy index funds, is to put their money into the S&P 500. The things that require no knowledge at all are where most people put their money. And it's where most people should put their money. Personally, I'm looking at the publicly traded companies that are ahead of the curve of other technologies. I don't want to put a large part of my portfolio into investments that are speculative, into things that could theoretically go to zero. I work too hard to make the money that I made. I'm not trying to make all my money as an investor. I'm trying to protect my wealth. I'm trying to grow my wealth. If I do 15 to 25% per year in growth, I'm really happy. And that's my target when I'm investing in something. So I'm looking for things that I believe in that are on a discount that I think could 10x over the next 10 years, even 20 years would match my 15 to 25% target. Anything over than that is great, but like 15 to 20% is really, really good. As an investor, you make your money in your business, you make your money in your career. You make your. You make your money with your skill set. You grow it steadily with what you invest in. So when we're looking at crypto, those are companies like Square and PayPal and even Visa who have the technologies and the teams and the experts to lead the charge in that direction. They have a better shot of having healthy rates of return than me trying to be a crypto picker. Although I have a small percentage of my portfolio is reserved for exactly that. So once again, 80% in stocks, 20% or less in just speculative things that I'm hoping, you know, thousand x over the next few years. That of course, is my amateur opinion. Cause I'm not a financial advisor or even super knowledgeable about this stuff. I'm an idiot. That you found on the Internet. You shouldn't listen to anything that I say. This is for entertainment purposes only. The things that we hear about like the gamestops and the AMCs and the bitcoins that go from zero to a thousand in no time flat are the exceptions, not the rule. The reason why Warren Buffett is one of the richest people in the world is because he has been doing the same thing consistently for 70 years. The guy is in his late 90s. He's had lots of Time for all of that to compound. And your job as an investor is to take the money that you have and to put it in a position to compound over a very long period of time. That means that we're betting on things that are going to grow for 10 years, 20 years, 30 years. Cryptocurrencies will always have their place and that technology will probably displace a lot of businesses, but that is not going to change traditional investing. Instead, they will augment one another, they will work together. And for now, I think it is still a responsible bet to keep the majority of your wealth into stocks and companies that are going to grow for a very long time and to take the speculative amount that you have of your portfolio and be willing to lose it and be more risk tolerant in that area. My name is Ryan Daniel Moran and I help entrepreneurs build businesses and invest the profits one more time. If you're not an entrepreneur and you want to be, the first thing that you need to invest in is your own business, something that you control. Because the way to wealth is to own things that produce income, take that income and invest it into more things that produce wealth and income. Build businesses, invest the profits. If you'd like some help on doing that. We help entrepreneurs build seven figure businesses that they can sell inside of something called the capitalism incubator. And one of the things that we do in there is I invest where I have a strategic advantage. I have a knowledge advantage in Internet entrepreneurs, especially the ones that are coming from our community. So part of my portfolio is investing where I have an I to help a specific group of people, people and I help them bring their vision to life with my time and my capital. That's one of the things that we do inside of our incubator. We help our entrepreneurs get clear on their vision, launch profitably and have the resources that they need in order to have a profitable business they can scale and sell. So if you want to get plugged into what we do, you can find out more over at capitalism.com Inc. That's Inc. And you can see all the success stories and the people that we've helped inside of our incubator. If you found value in today's video, let me know in the comments. It means the world to me. I really do read all of your feedback and I really appreciate it. Thanks so much for watching and I'll see you next time. Take care.