This video ranks various investment strategies from worst (F tier) to best (S tier), providing a guide to help viewers avoid losing money and understand the paths to wealth accumulation. It categorizes strategies based on their risk, potential for return, and accessibility to different investor levels.
The three main reasons people still use C tier (capital preservation) strategies despite not beating inflation are:
Long-term compounding (B tier) is considered boring because it involves low-risk, steady, and gradual growth over extended periods, often decades. There's no excitement or quick wins to brag about at social gatherings. Many people avoid it because they are looking for faster, more dramatic results and think they can "outsmart" the market or become a "trading genius." This often leads them to pursue more speculative or active strategies that promise higher, quicker returns, even though these are statistically less likely to succeed for the average person.
S tier investments like private equity and venture capital are inaccessible to most people due to the sheer scale of capital required and the exclusive nature of these deals.
Specifically:
