Why Investing in Stocks Beats Buying a Home

Rashad Bilal (0:00)

What the theory is that with the money that you would have put down on the house, the money that you would have put for maintenance on the house, the money that you would have put for taxes, that's going to investments. That's not saying that just live in an apartment, rent an apartment, and then you have money and then you just want to just do whatever, go to Vegas and just put it on your favorite money line for the Rams. No, that's not responsible. So, it is very much so is a conversation. It's actually even probably more relevant to people that's not extremely rich because the money means more. The money, $100,000 to the average person is going to mean more than $5 million to Bad Bunny.

Right? That's just a fact.

So, every dollar that you make, you got to make sure that you're making the right decision because you can't afford to make the wrong decision. Sometimes in life, you can afford to make the wrong decision. It's like, yo, damn, a million dollars, whatever, I'm going to get that back. But no, you make the wrong decision. Sometimes in life, there is no coming back.

Troy Millings (1:03)

There's no coming back. There's no coming back. And controversial take, but in terms of reward, ratio and back to opportunity cost, you should not be putting more into a mortgage for a property that you don't fully own than you do into the market. When people give pushback on it, I'm a prime example of it. Regardless of whatever wealth I have, I stayed in a two-bedroom condo six, seven years. I know people that had seven and $8,000 mortgages and will put $300 into the market. And they always tell me, damn, I should have did it your way.

It does not make sense to be house rich and pocket poor.

Makes no sense at all. It looks glamorous, but when I get to move it around and you see me Troy and Rashad, he just look stressed and free and all that. That's from good decision making. Even my friends be like, yo, you could have, yes, I could have went and bought that shit, but it, shouts to Xander, I love you, do you really go to bed soon? It feels better to have his college paid for at six years old and he's 10 now. And if I want to take off three years of work, I can do so. Cause I put the money into the market to work for me.

SPEAKER_3 (2:16)

That's a fact.

Troy Millings (2:18)

Put that money away. If my family needs anything, it ain't a question. Go ahead. I don't care what it is. My dad wanted a pterodactyl for next Invest Fest. What is it? A test or whatever. Got you.

Got you. Pick your struggle, though.

Do you have to pick yours? You have to either sacrifice being wealthy later or balling now. All the ballers who spend the money, they end up losing that shit. It's not worth it. That's a guarantee.

SPEAKER_3 (2:46)

That's what I said. You're not going to be able to, and this is coming from a person that was nine to five. You're not going to be able to work your way to wealth. It's just not possible. Don't matter how many jobs you got, you're not going to be able to work your way to wealth. You have to invest.

I mean, that is the message that I'm sending to every student, every young adult, every adult. Listen to this man speak about how important investing is to now and the future, especially in the terms of AI and the job replacement and the efficiency that is about to happen, right? There was just a study, a Harvard study that said 13% of college graduates can't find a job because it's been replaced.

Rashad Bilal (3:24)

And it's getting wider.

SPEAKER_3 (3:25)

That's 2025

That number is only going to increase. You have to figure out alternative ways to make money, legally, and investing is at the paramount of that. So you have to have your money make money. I don't care how much money you have.

Troy Millings (3:40)

It has to make money.

Rashad Bilal (3:42)

And here's the...

Okay. Let's cause some internet nonsense reaction videos. Vesting in stocks is a better investment than investing in real estate.

Troy Millings (3:55)

Well, a thousand percent. Combination, if we can do both, great. If you have to do both, highest return.

Rashad Bilal (4:01)

Warren Buffett said it.

Troy Millings (4:04)

And lived it.

Rashad Bilal (4:05)

If you have a million dollars, you invested in stocks. Ninety-five percent of the time, you're going to make more money than if you invested in real estate.