The speaker describes their younger self's approach to investing as trying to find a single stock that would provide life-changing returns, believing this was the shortcut to wealth. This strategy involved extensive research, following market trends, and listening to self-proclaimed experts. The speaker admits this was speculation, not investing, and ultimately unsuccessful.
The speaker recommends investing in a diverse and reliable fund such as an S&P 500 Index Fund or ETF.
The speaker advises that if one wants to engage in speculation (stocks, crypto, lottery), they should do so in moderation, using their best judgment and ensuring that most of their money is invested in a conservative manner, not speculative investments. A specific percentage isn't recommended, leaving the decision to the individual's judgment.
This video explains the difference between investing and speculating, arguing that consistent, long-term investment is superior to high-risk, short-term speculation for building wealth. The speaker uses a personal anecdote to illustrate the pitfalls of speculative investing and advocates for a methodical approach using index funds.