Ramit Sethi criticizes an online promoter who advertises 20% investment returns, calling the claim impossible and a scam. He contrasts realistic long-term returns (around 7%) with the exaggerated 20% promise, using a running-supplement analogy to emphasize the obvious falsehood.
I recently saw some scammer who we both know online promoting 20% returns. It said 20 in huge. I'm like, how's this guy not incarcerated? Anyone who knows the basics of personal finance, in fact, anyone who's watched this interview knows 7% is your good comparison. So if somebody's promising me 20% returns, I already know it's a lie. It cannot be true. It would be like me going and saying, I can promise you that you can run 40 miles an hour if you use my supplement. You just like, I know this is a lie. It's impossible. And you and I both know that over the course of the long term, it is effectively impossible for 20% returns.
