Podcast Summary: Ask The Compound – “How Do Young People Get Rich?”

Date: June 25, 2025
Hosts: Ben Carlson, Duncan Hill
Guest: Josh Brown
Theme: Exploring pathways for young people to build wealth, the realities of options trading, crypto vs. gold, and nuances of investing philosophy.

Episode Overview

In this episode, Ben Carlson and Duncan Hill, joined by financial commentator Josh Brown, answer audience questions about the mechanics of getting rich as a young person. They peel back the realities of short-term windfalls (like crypto) versus long-haul strategies, debate options trading as a risk management tool, discuss whether Bitcoin might replace gold, and clarify what it really means to be a “Boglehead.” The conversation moves through traditional and unconventional wealth paths, current market trends, and the evolving influence of retail versus institutional investors.

Key Discussion Points & Insights

1. Using Options to Lock in Stock Gains

Timestamps: 02:01–08:42

• Scenario: Should investors use options (puts, calls) to lock in gains from windfall stocks like Nvidia?
• Josh Brown’s Take:
  • Don’t dabble in options unless fully committed and educated.
  • “I don’t think you should be a part-time options person.” (03:24)
  • Options introduce ticking-clock risk; not suitable for most.
  • Prefers holding stock for long-term upside over options speculation.
  • “Having somebody turn an hourglass over on me is not conducive to the way that I invest.” (04:28)
• Ben’s Perspective:
  • Sees options as non-trivial, high-pressure, and best left to experts.
• Cautionary Insight:
  • 90%+ of options expire worthless—any experimentation should use limited capital and be purely for learning.

2. How Do Young People Get Rich (Beyond Crypto)?

Timestamps: 08:43–19:28

• Ben’s Caution:
  • Sudden crypto wealth can “warp reality,” likening to “child star syndrome.”
  • “Young overnight riches has the potential to screw you up.” (08:50)
• Industry Paths & Modern “Get Rich” Avenues (List, per Josh/ChatGPT):
  1. Long-term investing (“good habits”): Still effective, but takes time.
  2. High-paying tech/finance/consulting: Not accessible to all.
  3. Day trading: “Bullshit…nobody gets rich, it’s fake.” (13:45)
  4. Social media entrepreneurship: Fastest route if you are dedicated (e.g., niche content on TikTok, YouTube, Instagram).
     • “If you are 25 years old and want to make your first million by 30…this is the fastest way.” (14:29)
  5. Real estate investing: Hard for young people without prior capital.
  6. Bootstrapped or VC-backed startups: Build a business that fills a need—mundane businesses can be lucrative.
     • “Cleaning pools…detailing cars—nothing special, but built an amazing reputation.” (16:34)
  7. E-commerce, consumer products, dropshipping, gaming, side hustles: All valid, but require standing out and luck.
  8. Selling sexuality online (e.g., OnlyFans): Not a joke; real money for some.
  9. Alternative investments: For people already wealthy.
• Generational Perspective (on Gen Z):
  • “Everything is gamified…career path is a game. Relationships are a game.” (19:03)
  • Gen Z mindset seeks “the hack,” not the grind.

Memorable Moment:

• Discussion of unconventional wealth (OnlyFans, niche YouTubers):

  “This is a way that young people are getting rich…It’s filling a very specific need in society.” – Josh (10:16)

3. Will Bitcoin Replace Gold?

Timestamps: 19:29–30:16

• Original Question: With Bitcoin’s growing market cap and declining volatility, why would people store value in gold versus Bitcoin in the future?
• Ben’s View:
  • Gold’s value proven by its resilience, especially amid global sanctions (“You can’t sanction gold bars”—21:39).
  • Gold and bitcoin both outperforming at present.
• Josh’s Counter:
  • Gold and Bitcoin have coexisting roles.
  • Historical context: Gold was crucial as a universal store of value on Silk Road trade; Bitcoin upgrades this for a digital age.
  • For refugees and migrants, digital currencies allow wealth transfer across borders—a modern replacement for “gold in the jacket lining.”
    • “Today’s version is: upload everything you own into the cloud in the form of a digital currency.” (23:06)
  • Central Banks/States: Still need physical gold, not digital assets, due to geopolitical risk and sanction evasion.
  • “Doomsday” Scenario: If global infrastructure collapses, gold may have use—otherwise, digital assets are increasingly accepted.
    • “Fighting-age males and reproductive-age females will be the currency…” (29:38)
  • Synchronization with Technology: Gold lost primacy as global commerce achieved real-time consensus via technology.

Notable Quote:

“Stable coins…could replace gold 100%.” – Josh (27:50)

4. What Does It Mean to Be a “Boglehead”?

Timestamps: 30:24–36:41

• Question: Can you be a Boglehead without a pure three-fund Vanguard portfolio?
• Ben:
  • 80% of his investments mirror the Boglehead philosophy—index funds, low cost, buy-and-hold—but allows flexibility.
  • Emphasizes discipline, low costs, and staying invested, over dogma.
• Josh:
  • Believes there’s no need for community “religion” over investment style.
  • Personal investing can blend strategies as suits the individual.
  • “Even one second spent worrying about what someone else is doing with their money is wasted.” (32:13)
• Broader Message:
  • Label flexibility is key; one’s investing approach need not be constrained by community policing or purity.

Memorable Exchange:

"Kiss my ass. I'm a Boglehead in my mind is what you should tell people.” – Josh (32:10)

5. How Can Public Companies Reach Retail Investors?

Timestamps: 37:29–41:32

• Question from Investor Relations Professional: How to engage retail audiences and RIAs (registered investment advisors)?
• Ben’s Insight:
  • The retail audience is increasingly important—less so institutional money.
• Josh’s Advice:
  • Not worth trying to win over RIAs; they rarely advocate individual stocks or attend company meetings.
  • “If you want to engage with the investing public who actually care…do that direct at the retail level.” (39:57)
  • Focus on social media, direct-to-consumer media (podcasts, YouTube, etc.).
  • Put CEOs/companies where retail investors can connect with them.

Memorable Quote:

“Go where they are…Put your CEO in a place where other CEOs don’t go and they’ll stand out.” – Josh (40:48)

Notable Quotes & Moments

• On options trading:

  “Having things that are expiring and having somebody turn an hourglass over on me is not conducive to the way that I invest.” – Josh Brown (04:28)

• On crypto-rich youth:

  “Young overnight riches has the potential to screw you up…It’s going to warp their reality.” – Ben Carlson (08:50)

• On fast routes to wealth:

  “If you are 25 years old and want to make your first million by 30…social media entrepreneurship is the fastest way.” – Josh Brown (14:29)

• On the need for hacks/Gen Z:

  “The first instinct…is what’s the hack? What’s the trick?...Everything’s a game.” – Josh Brown (19:03)

• On Bitcoin as gold’s successor:

  “Today's version is upload everything you own into the cloud in the form of a digital currency.” – Josh Brown (23:06)

• On religious investing identity:

  “Even one second spent worrying about what someone else is doing with their money is wasted.” – Josh Brown (32:13)

• On engaging the modern retail investor:

  “Go where they are...Put your CEO in a place where other CEOs don’t go and they’ll stand out.” – Josh Brown (40:48)

Episode Flow & Timestamps

• [02:01–08:42] Options trading for existing stock gains
• [08:43–19:28] How young people build wealth (traditional vs. new methods)
• [19:29–30:16] Bitcoin vs. gold as stores of value
• [30:24–36:41] Defining “Boglehead” philosophy
• [37:29–41:32] Strategies for public companies to reach retail investors

Tone

The conversation is candid, skeptical of hype and get-rich-quick schemes, and leans toward pragmatism. The hosts and Josh Brown keep it conversational, irreverent, and rich with anecdotes—offering actionable advice while deflating illusions commonly held by young investors.

Takeaways

• Building wealth as a young person is more accessible via entrepreneurship and content creation than traditional finance, but requires being in the top 1% for the chosen field.
• Options trading is risky and should be treated as a full-time pursuit, not an afterthought.
• Bitcoin and gold each serve unique functions; both can exist for different needs in a portfolio or in society.
• Investing approaches should prioritize what works for the individual—labels like “Boglehead” are less important than overall discipline and low costs.
• Reaching today’s retail investors means favoring direct engagement through new media platforms over traditional institutional or advisory channels.

For more insights or to submit questions, visit: Ask The Compound Show