‘Wolf of Wall Street’ J. Belfort explains how you can make money on Wall Street
Former stockbroker Jordan Belfort, famously known as the ‘Wolf of Wall Street,’ has shared insights into how individuals can make money on Wall Street without resorting to high-risk maneuvers.
Contrary to common beliefs, Belfort advocates for a patient and disciplined approach rather than pursuing quick riches, he said during an interview with Tucker Carlson on December 30.
To begin with, Belfort addressed a common misconception among aspiring investors regarding the notion that a small initial investment necessitates a grand slam to turn into substantial wealth.
“The mistake that the average person makes is that when you don’t have that much money to start, let’s just choose a number, let’s say just $10,000. <…> You say to yourself, if I’m going to really get anywhere as an investor, I need to make a big hit, like to turn that into a million bucks. I’ve got to find the next Apple computer, the next crazy crypto token. <…> Which leads you to engage in wild speculation short-term trading,” Belfort said.
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Instead, Belfort encouraged a counterintuitive strategy stressing the importance of selecting high-quality stocks and the benefits of long-term holding.
“You don’t need to start with a lot of money to end up with a lot of money by doing the exact opposite, which is holding for the long term, and in all the highest quality stocks and relying on long-term compounding and reinvesting dividends and making small contributions along the way,” he added.
Belfort, also a motivational speaker, emphasized the importance of tuning out market noise and steering clear of attempting to time short-term market movements. He underscored that predicting the market frequently leads to the creation of taxable events and, more often than not, results in losses.
Finally, Belfort also touched on the inherent challenges of individual stock picking, noting that the majority of people tend to make suboptimal choices. He recommended steering clear of the temptation to predict short-term market fluctuations.
“Human beings, by our nature, we are kind of crappy stock pickers, and when you try to pick individual stocks, you tend to lose most of the time,” he concluded.
Belfort generally underscores the value of long-term investing and diversification, stressing that steady contributions and patience yield substantial wealth over time.
Belfort’s take on cryptocurrency
It’s worth noting that Belfort has previously shared his investment perspectives on cryptocurrencies, which are distinct from the stock market.
As reported by Finbold, Belfort has suggested that Bitcoin (BTC) is poised for further gains. He highlighted that regulatory developments are favorable for the maiden cryptocurrency, expressing confidence in its resilience with minimal chances of reaching zero. Belfort also asserted that Bitcoin is destined for growth despite occasional scams within the crypto sector.
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