Orlando Bravo, Thoma Bravo founder & managing partner, talks about how he would invest $100,000. He's on "Bloomberg Wealth with David Rubenstein". This episode was recorded March 6 in Miami.
@@steven9169Hi Steven, do you have a preferred investment that you yourself have actually tried and tested? I think you and not just you but in fact most people across social media have fallen victim to the delusion that the average person that works is somehow going to become a part time investment banker or asset manager in their spare time. It’s just not possible. This advice is pretty much spot on for anyone except those that deal with the stock market as a profession or corrupt politicians. Now that’s not to say you can’t find other more risky stocks in your own time and buy them, but you will find yourself checking this all the time during your working day and trust me that has an impact on your performance at work. If you want to make a million pounds in less than 24 years through investing, either make it your career or find a lot more capital for your investments.
I’ve got $275,000 in the S&P 500 and $220,000 in a fixed 7% investment and $3,000,000 in commercial real estate. Just 15 years ago I had to turn my car around from going to see Christmas lights because I didn’t have $10 for the admission.
Most actively managed funds fail to beat the S&P 500 in the long run. So even people that make it their full time job, that dedicate their whole life to it, rarely beat the average in the long run.
SPY and VOO both have all 503 companies that are in the S&P 500. Owning either of these two, you match the S&P 500 YOY. It’s mathematically impossible not to.
I’d have to disagree. S&P index’s are a great avenue for people that have limited exposure to the market and are looking for low expenses ratios. However, regrading performance, that’s simply not true.
@@ernestpwhirlllyyes which historically makes markets crash into recession by the way. In those market conditions gold and commodities are the best investments, not equities.
That's because Warren Buffet is not trying to sell anything. His answer is authentic. That's the only correct authentic answer to give in this scenario.
@@nukethenukes2319 you can buy $100 of VOO at a time. In vanguard you can either enter the amount of shares or the dollar amount. Trust me I do it all the time. Where you enter the share amount in that same box you can click on dollar and type in $100.
@@nukethenukes2319 in vanguard you can. In the box you enter the shares in you can change it to dollars and enter $100. You could even enter $1 if you really wanted to. You do not need to buy full shares.
I’ve always been aware I’m not a day trader and put it into the s&p for its history and diversity, it’s very reassuring that it has not only paid off but nearly all actual experts recommend this route
Good advice but 100k in the s&p is only gonna net you 8-10k a year. Starting a business with 100k can potentially earn you 8-10k or more a month.Big difference.
$200 a month at 10% average interest rate, over 40 years, will earn you just under $1.1 million. I think that’s doable. However, it’s worth noting that $1 million today will not be worth $1 million 40 years from now.
People say this all the time but never take into account that $200 also won't be the same in the coming decades so in the same light the likelihood is that you'll be inputting way more than $200 each month further down the line
@@BaileyMxX Right and that was my point, which perhaps I wasn't clear enough about. I should have said that is doable "for most". At least they will have something. I make a little over $50k/year and put $700 into various investing pathways per month. S&P 500 has an average return of 10.4% over 30 years, but adjusted for inflation is 7.7%. So for convenience's sake, let's just say 7% interest on $700/month over 40 years equals $1.67 million. That's assuming my income doesn't increase at all and I am single for the next 40 years, where there isn't a second stream of cash coming into the household. Even if the cost of living increases by double, that still allows me 20 years of retirement money (assuming that the $1.67 million isn't still gaining interest over 20 years).
@@DroppedGoat69 Various investment pathways, but let's just take the S&P 500 as an example. The average ROI is 10.4% per year. However, taking inflation into account puts it at about 7.7%, so that takes it to just under $600k. $200 is the bare minimum and my calculations don't assume that the income will increase.
This is a fact. It will gain between 6-10 percent yearly PLUS the avg monthly gains. What's 6 to 10 percent of $100K? Yeah that adds up and compounds nicely.
Everybody who knows what the s&p 500 is should be teaching it to their children! The s&p 500 are just that...the top 500 companies....why? BECAUSE THEY ARE THE MOST PROFITABLE! THEY MAKE MONEY & SELDOM LOOSE IT. If they do they are out of the top 500 companies.❤
I wish I could post pictures to show how accurate this statement is. I would go a step further as to say buy dividend paying ETFs that follow the S&P… reason being is that you will receive payments during times of uncertainty so you don’t have to sell your stock. Also, you may not need to pay any taxes (0% bracket) for qualified dividends (42k filing single and 84k filing jointly)… hope this reaches someone that knows what to do with this info
Man what are those ETFs you are talking about ? And how i buy them ? Do i have to pay a percent of them to some kind of broker? I mean i know nothing about stocks i do have that 100 k all i have done with it is i locked it into a cd account that gives me 5.1 percent
@@no1no1655 I like schd as my high yield dividend etf as well.. the reason I threw VTI and VOO in seperate is because their holdings are different. Vti holdings is lower end companies, to high level. VOO is all more higher end. To your point though you probably don’t need both.
The most boring advice is usually the best one. Completely agree. Moreover, nowadays, investing in national treasure letters or bonds has changed from being boring to be a risky asset. So this statement is righter than ever.
You sure? Because looks to me like we are overdue for a correction. Long term I agree maybe this is good advice. but on the other hand look at Japan’s Nikkei index, it still hasn’t reached the highs of 1990’s.
Here’s my boring answer. Get a job and invest what you can afford. Invest 5, 10, 25, 50 dollars a month in passively managed S&P 500 ETF or Nasdaq 100 ETF. Just Google which ETF has the lowest fee like around .04% fee.
Here’s my boring answer. Get a job and invest what you can afford. Every month Invest 5, 10, 25, 50 dollars or higher in a passively managed S&P 500 ETF or Nasdaq 100 ETF. Just Google which ETF has the lowest fee like around .04% fee.
Find something you can make decent money at, put in a lot of hours, be frugal, avoid lifestyle creep (which is make more, spend more), live within your means and save your money. The first 100K might be tough depending on your situation, but it does start to compound rather quickly. I recommend finding a good way to track your finances in one spot. I used to use Mint, but that shut down, so now I use Monarch Money. I was around 200K in net worth when I first started tracking in 2018, now I’m just shy of my first million.
I’m an advisor and that’s my answer also. $100k in cash so it’s gonna be in a taxable account. Spy or voo are great options. But i always say, I plan for your goals. What’s your goal! That’s important.
The PE ratio is terrible. The stock is way over valued. I would not go all in on Nvidia now. Also a lot of S&P ETFs have that in there so you get some exposure without all the risk.
SAFEST IS TO BUY REAL ESTATE! You get monthly dividends, it increases in value and nobody can say your money is GONE, you can drive by it and see its still there. Tangible(real) assets!!
Noone knows what the future holds. Usa situation is changing, specifically with all the debt. But holding for more than 10 years will definitely come back with profits
VOOG, VOO, VTI, VUG, SPY etc. Buy the ETF. Vanguard has the lowest fees and you can buy dollar amounts like $50 or whatever. That is what i did for myself and my kids.
No one can time the market. If psychologically it makes you feel better, cost dollar averaging makes sense, but your total return will probably be less than
I learned this from Warren buffet years ago. Don't ask how much I now have. Just know it's solid advice. Buffet told his wife that when he dies, put 90% of the money she gets left into the SP500 and the rest in bonds and such. Listen to the man
One rollover IRA I have went from $80k to $600k in 10 years using this advice. Outperformed my actively managed mutual funds. And if you compare Berkshire B vs the 500 you'll see something very interesting.
When you say buy s&p 500 exactly what it’s referring to? Is it buying mutual funds from a bank or buying etf from online platform? What ticker symbol are the s&p 500
100% put $30k into an index linked account late last year, it's already worth over $34k and it's only on the mid range of risk. It will nicely work away by itself.
Spoken like a true rich person trying to protect wealth. You’ll make money slowly and retire as an elderly person this way. Invest in real estate and if you understand the 4 year cycle, invest in crypto and retire at 40
Great advice just let someone else use your money. What people don't realize is 11% percent growth a year and give people you don't know the power to control the economy.
