Gold enthusiast Peter Schiff admitted he would ‘be a lot richer’ had he invested all his money in the ‘Magnificent 7’ a decade ago — here’s what you can learn from his hindsight
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Gold-bug Peter Schiff has admitted he could have made a lot more money over the last decade if he had focused his investing on high-performing stocks instead of gold.
“Had I had all my money 10 years ago in the ‘Magnificent Seven,’ I’d be a lot richer than I am today,” the 61-year-old investor said recently on the PBD Podcast.
“I mean, I’m rich enough, but I would have more money had I concentrated on those names,” Schiff added — referring to the seven giants dominating the U.S. stock market: Apple (AAPL), Microsoft (MSFT), Amazon,Alphabet (GOOGL), Nvidia (NVDA), Tesla (TSLA) and Meta (META).
Here’s why U.S. stock investors saw their wealth explode in the last decade, why Schiff still cautions against being overweight equities and you can do to bolster your own portfolio.
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Top 1% rake in huge gains
The total net worth of the wealthiest 1% in the U.S. hit $44.6 trillion at the end of 2023, according to Federal Reserve data — a new record driven primarily by an end-of-year stock rally that boosted rich individuals’ investment portfolios.
Schiff, who said in June 2023 that his “net worth is a lot more than $80 million,” would fit within the Fed’s top 1% definition for Q4 2023 — but unlike some of his wealthy peers, the growth in his net worth was somewhat restricted by his investing philosophy, which is hyper-focused on gold.
If wealth generation was his sole focus, Schiff said he could have earned even more money by investing more heavily in the “Magnificent Seven,” all of which have dramatically outperformed the S&P 500 in the past decade. If you want to try adding the Magnificent 7 to your portfolio, there are tools available that can make this endeavor simple so you don’t have to miss out like Schiff has. With Interactive Brokers — a low-cost investment broker for active traders— you can invest in and trade a wide variety of stocks, including the Magnificent 7.
Interactive Brokers help you maximize returns by offering the lowest commissions available and the ability to scan world markets for undervalued stocks — as well as megacap giants like Amazon and Microsoft. All you need to do to get started is fill out their quick online application and you’re on the path to building your wealth through the stock market.
You can also expand your horizons beyond the Magnificent 7 and find alternative stocks with Motley Fool Stock Advisor.
Stock Advisor is a subscription-based service that provides users with market insights and expert-stock picks, so you can better allocate your money to see the best returns.
Essentially, Stock Advisor does the research needed to help you find companies that have the best chance of beating the S&P 500. They even give you access to a list of stocks to buy today so you can get in on timely opportunities.
Stock Advisor’s recommendations and stock reports help you learn what the hottest stock picks are, so you can take it upon yourself to invest in what you want with their guidance in mind.
Essentially, Stock Advisor is a one-stop shop for keen investing guidance and education as you make your investments in tech or any other area of investing.
Read more: ‘They are awful’: Dave Ramsey is fed up with millennials and Gen Z who he claims don't work but want to own homes — here’s what he says you need to be a ‘successful' investor
Soaring stock portfolios ‘all artificial’
Schiff believes the $44.6 trillion held by America’s top 1% is “all artificial [and] all on paper because of what we claim stocks are worth.”
He believes investors are simply “benefiting from the inflated asset price level” caused by the Fed’s monetary policy decisions in the past decade — specifically the low-interest rate policy (hovering near 0%) in the early months of the COVID-19 pandemic and the two years prior.
Schiff is also predicting a phenomenon known as “de-dollarization” — when countries shift away from the greenback as a reserve currency, medium of exchange or unit of account.
“Gold has already broken out,” he told Bet-David, alluding to the fact that central banks bought gold at “breakneck pace” in 2023, per the World Gold Council (WGC), with annual net purchases of 1,037 tonnes, just 45 tonnes short of the 2022 record.
You can get in on this golden action by opening a Gold IRA — a type of individual retirement account that allows you to invest in gold and other precious metals in physical forms — with the help of American Hartford Gold.
By opting for a Gold IRA with American Hartford Gold — an industry leader in precious metals — you can diversify your portfolio with a tax-advantaged retirement account and help stabilize your finances.
Precious metals have historically acted as a hedge against the dollar’s decline, so preserving your savings with gold might just be the tool you need.
More stock market alternatives with solid potential
If you're not interested in dealing with the stock market ‘s volatility, there are other ways to up your cash flow over time and platforms that make investing in alternative assets accessible.
With Masterworks, you can dip your toes into the world of fine art without dropping millions on a painting at an auction. Their investment platform allows you to buy and sell shares of iconic works of art — as in Banksy and Picasso-level iconic — just as you would stocks.
There’s more than one option if you want to invest in the finer things in life.
If fine art isn’t your thing, you can invest in fine wine through Vinovest.
Vinovest is a wine investing platform where you can build a portfolio of this inflation-resistant asset. Vinovest’s algorithm will automatically suggest which wines are best for your portfolio based on your financial goals and risk tolerance.
All you have to do is fund your account with a minimum of $1,000 to potentially enjoy potential steady returns.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
