How to Money · Friday, July 31, 2026
The podcast debunks the advice 'invest in what you know,' arguing that personal familiarity with a company's products or services doesn't equate to a sound investment strategy. They highlight that market dynamics, competition, and unforeseen events can drastically impact even well-known companies, making diversified index funds a more reliable approach.
“Another investing thing that you probably hear that people here investing advice is to invest in what you know you might hear folks say that it makes sense to invest in companies that you use regularly. So like, if you absolutely love Netflix, if you're a fan of the content they create, you should invest in the stock.”
“And it's not to say that people won't want to spend time in the metaverse. If Zuckerberg can make it something fascinating, if he can make it like Ready Player one style, maybe we'll all be in there like doing cool stuff. Or we won't because people because we just don't know the future, right, like that, That's the predicament here, is that we have no clue.”
“And so oftentimes when we do this, Matt too, we just get the timing wrong. So you might kind of be right, maybe the metaverse. Will exactly going back to timing of the market. Yes, sure, buy low, sell high, but how the heck do you figure that out?”