What Orlando Bravo would do with $100,000
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- čas přidán 8. 05. 2024
- 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.
Black, Black, Red, Red, Black. Now you have 2.5 million. Youre welcome.
or bankruptcy... lol
@@A.I.- lol
I got 3.2 million. Is that wrong?
@@ludwigdrummer7802 the tax man cometh
What is black black red red??
Great advice. Now I just need $100,000.
Me too
Don’t worry I’ve got you, I’ve got 200
Facts 😂
got them
You only need 100$ to open an account!!
I worked at an investment bank for over 8 years, this is the best advice ever.
Best advice? If you put 100k into the sp 500 it would take 24 years to make a million pound he probs will be dead before he can spend it 😂
@@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.
@@steven9169 It’s so when he’s retired or to give to his children. Not everything is about short term gains and buying loads of stuff
@steven9169 this is why you start young
@@maxcooper8831No young person in this time can have that much unless they were already financially stable by their parents.
An honest financial advisor, what a day to be alive
Do you agree with this advice ❤?
Wish the government would had put my social security holdings in the S&P 500
That hit deep😂
Unless you retired when the market crashes like 2009. It’s called sequence of returns risk.
I’ve been saying this. If our money literally just went into that fund and we got back the earnings. Mean while they blow through that budget
The government squandered it and you won’t be collecting anything
_had_
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.
Congrats but I was waiting for a punchline dammit haha
Inspirational
I don’t get it… 🤷♂️
You are well named Sir !!
@@certs73 I’m usually good for a punchline. Sorry. 😀
I have $10. Now I just need to find $99,990.00
Be careful what drum you beat.
You'll get it stay positive ,wait for the crash it's coming .
It is a very serious answer.
you know what, i hope you get the rest of it !
You can buy $10 of VOO in Vanguard.
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.
@@Ryan40272 those are index funds, not actively managed funds.
@@DeutscheDP please share with me all the funds that have beaten the S&P average over a period of 20+ years.
@@Ryan40272 yes because those are index funds, not actively managed ones.
If you bought the S&P 500 in 2020, your up 70%
Yep, and everyone is feeling the beginning effects of over printing money. The fun is just beginning. It's going to get a lot rougher.
@@ernestpwhirlllyyes which historically makes markets crash into recession by the way. In those market conditions gold and commodities are the best investments, not equities.
@@gggk135 lol. Gold. Take your 3% profit on gold and build a bunker, have some powdered milk. I’ll stick with my steak
@@donknotts5625 gold outperforms the equity markets in every single recession in recorded history lol. I’m talking about bear markets.
Congratulations you now have $170k.. still not rich.
Completely agree. A self adjusting fund.
GME/TSLA and chill. Puts on the rest. Lost decade incoming.
@@chamade166Michael Burry ain't got shit on you 😮
@@chamade166stay in school
@@ojasa88 no arguments, good luck next 10 years
That's Warren Buffet's answer too!
What a wise man do in the beginning, would be a fools errand at the end. 🙏
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.
I have this same advice for anyone young. Every paycheck buy $100 into the S&P fund like VOO or SPY. Keep doing that for 10 years and watch it grow.
❤
Isn’t the asking price for VOO like $430? I’m pretty sure you can’t Buy into VOO with $100 every month.
@@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.
@@nukethenukes2319 Sure you can. You just buy fractional shares. I do it all the time.
You need to ask more questions. Whats your timeline and purpose of the investment for instance
It hasn't made me "rich" but it has proved good advice for me.
Coming from the guy who just brought the Orioles still asking questions and learning 👏🏾👏🏾👏🏾
Do this with your kids money too. Birthday, Christmas, etc. 100 here and there in the S&P for 18 rears really adds up.
I love this, and Warren Buffet has been saying it for years yet people think it’s too simple there has to be a catch
Cause it take so long hit a million.People want it now!!!!!!!😅😅
@@MrDonny27 Everything valuable has to take time.
Investing success takes time it's not a get rich quick scheme .
Frankly, that's also what you should do if you have $100,000,000.00
In personal finance and investing, the simplest choice is most often the right one
Orlando, I met you while you were at GTCR.
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
No one is day trader. Overwhelming majority lose money long term
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.
Time is money. You can buy the index and leave it alone. You have to manage the business every day
$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.
whos paying you that 10%?
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.
It will at least be worth more than if you did nothing with that money
Advice : analyze equities based on fundamental valuation principles & integrate macroeconomic into growth projections.
What’s funny is that now everyone buying index funds, no one has to actually care about what a company does.
Yeah now it’s all up to blackrock and vanguard to decide
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.
If the fed continues the charade, It will essentially be flat.
The gains look great until you factor in inflation.
finally a person who is not selling bs
I would say find out what your money goals are and invest in educating yourself. THEN invest (or trade) with the rest. Applied knowledge is power.
100% spot on!
This is what anyone should do with any amount of money. I own just $12,000 worth of index funds, but it's the best place for it to be. Compound baby.
Thanks
$12k ain't gonna amount to much in an index even after 20 years. You have to keep adding money.
Decent idea…. But you need to actually just be buying the apex asset and just hold it for 20 years
Wud u lose it all in a crash... I keep hearing one is coming...
12k is nothing
Man… I’m not trying to retire when I’m 70. Thats too slow
Go to the casino
Then you’re a speculator and not an investor. Slow and steady wins the race
@@GianniAbbenda No thanks. I don't want to be slow and almost dead when I win that race. I'll make my own race route.
@@newyork397 Race to bankruptcy - new investment strategy
@@newyork397 Good luck to you.....
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.❤
Depends upon your age, employment status and goals. No one answer for everyone.
A cocktail party question is not a call for lectures.
if you need to ask, then sp500 is the answer
Michael Saylor has entered the chat
Lmao
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
Fuck that, passive invest is crippling all.
Laziest answer ever. They won’t share the real secrets.
That’s the second best answer. First would be to buy Berkshire Hathaway.
There are no secrets.
No it is the correct answer. If someone is asking then they have no business trading. $100k is not that much.
That is actually the secret, buy index funds.
The problem is when you need it and the market is down, youre fucked!
Dont give someone else your money to go gamble with. Buy real estate!!!
@@user-zv2ov6id5c perfect for when you need cash, you can what sell your garage? The S&P out preforms real estate by far.
I’d split the 100k into 4 different etf’s.
VOO- 50k
QQQ- 15k
VTI- 15k
Then a high yield dividend etf with the extra 20k
Don't need both VOO & VTI....pick one and SCHD
@@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.
And why VOO over VTI?
@@Losfhc VOO and VTI are very different. I like VOO and VTI. They have much different holdings.
@@soonermagic24 Not that different, and that wasn’t my question
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.
Thank you David!
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.
Different situation Japan was not willing to do mass layoffs to right the ship.
Bitcoin. Best performing asset of all time.
So were NFTs…
I don't trust Bitcoin long term. It will crash.
Vs lol
I agree 100% with him.
Learn. Earn. Invest. Compound.
-Codie Sanchez
Most common advice ever.
But some of the best advice ever that a lot of people still don't know
@@James-yi1vkyeah, most people have ZERO idea about financial literacy, basic investing, etc.
If it ain't broke don't fix it
Do you have any advice on how to the 100k first ?
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.
work
Index funds
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.
I ask them if they’re wearing level 4 plates and now that 100k becomes mine
Warren Beatty He said the same thing
Buffet. Warren Beatty is an actor 😉
If you have $100,000 invest into yourself, not crooked Wall Street start a business something you are passion about
How much do you need to start to invest in the Index?
Right answer. Also, the management fees on an index fund should be low.
One company - all in - NVidia
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.
You know what's interesting? BITCOIN, my friends!
WI just adopted Bitcoin as their digital currency going forward. 😮
Can't roll you how many videos and articles I've read. I can't figure out why bitcoin has value and NFTs dont
Bitcoin is speculation. It isnt currency.
For sure for me the only one that surpasses btc is Nvidia which is my top Investment...you are welcome
This is sound advice. Even if you double the amount, according to my financial advisor.
I have 100k that I have no idea what to do with and Ive been leaning heavily towards an index. Nice to hear. Who is this guy?
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!!
Not on a Democratic state/city
Stay in the suburbs and you’ll be fine. They all go to the cities, where they’ve always been.
Thats how the suburbs were created!!
🤣
Can you eat equity? On a dinner table
Real estate is a very good investment but it's a MUCH bigger hassle. Byying index is one of the only ways to have truly passive income.
Beat advice over my entire 45 year career.
Just don't buy it now. Index is WAAAY OVERPRICED
Can't time the market.
Strongly disagree. It will be up another 100% from where it is now by 2030. Yes, I’m talking 10,000+
@@DJSolisticaof course. But it's probably gonna drop from current price by a good amount before then.
In the long term, it always goes up
DCA in. None of us ever know what the market is going to do.
I buy every week no matter what. It's worked out great
Go to Jamaica and invest in beer one six pack at a time
Too bad 75% of Americans don’t even have $5,000 in the bank.
The S&P has an average annual return of 16%. It’s a smart move.
More like 10% but yeah
And sometimes less for over a decade. Depending on the decade
@@hai.zzzzzzit’s averaged just over 10% a year since inception. That’s including the -30% years. Time in the market.
@@Proto6789Yep. Average recession is 2 years and on average we have one every 10 years, historically speaking anyways. Who knows!
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
It might be a boring answer but he us so right.
He is exactly right. Warren Buffett says the same thing. Investing on cruise control.
Love that, I’d split between the SPX & SDY to also earn dividend
👍 Great advice considering you are already a homeowner.
That index is destroying the planet
How?
@@oskartheme5233 see dr. Nate hagens and his series “the great simplification”. The effects of relentless expansion of the economy.
I learnt this a while back. Wish I'd learnt it sooner
How do you buy the S&P 500? It’s not even an index fund.
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.
It also depends if index is in red or not due to market crash at that time so dont put full $100k in the index fund at once.
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
Thank you❤
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
The more they say this, the more I feel like something is fishy.
Amazing advice, just need 100,000 to invest, I can do a lot with that money ❤
Yup. I was thinking the same thing. I buy SPLG every week no matter what. It's been great.
Buy the spxl or upro etf. It’s spx x3.
Most of my funds beat 24% last year, so a mix of funds is better than one fund.
That's the same thing Buffet says. I trust that advice.
My Economics professor said the same.
This is the advice WARREN BUFFET gives everyone. The S &P outperforms all other asset classes over time.....
Put it in a CD - 5k a year
If someone is asking this question with $100,000 they should not be looking at anything else
Split it into a Mutual fund and a ETF. ETFs are designed to follow the S&P, but mutual funds are designed to beat the S&P...
I’ll be back to ensure this ages well.
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
VOO, VOOG, SPY, VUG, there are so many., do not buy from a bank. Vanguard has the lowest fees.
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.
What would life had been like had he stayed home with his 100k
Only 85k is covered by the financial insurance
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.
Good advice
What is the index?
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
Well great, now I'm skeptical of S&P 500 index funds.
I’m gay and this is the best advice ever
This is his advice for you to benefit him
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.
That's actually good advice while you considering what to do with your money later...
Buy credit funds like OCCI
index averages 10% private equity returns 17-35% ask the right person not S&P sales reps
Guys, this came out on 9th of may. The news has saturated. Its about time to start shorting…