The Ramsey Show Highlights

Episode: I Made $1.1M Trading Stocks
Date: September 2, 2025
Host(s): Ramsey Network Team
Featured Caller: Michelle (45, widow, single mom of 2)

Episode Overview

This episode features a striking real-life financial story: Michelle, a 45-year-old widow and single mother, describes her unexpected journey in stock trading, turning $270,000 into $1.1 million over five years. Seeking guidance on what to do next with her winnings, she asks the Ramsey Network experts whether to keep her high-concentration portfolio or shift strategy. The hosts offer their signature, conservative investing advice while highlighting the risks of concentrated stock positions through honest analysis and memorable personal anecdotes.

Key Discussion Points & Insights

1. Michelle's Financial Background & Stock Market Journey

• Michelle shares she's "doing well" financially—her only debt is her mortgage, set to be paid off within 10 months, and she maximizes Health Savings and retirement accounts.
• She invested $270,000 (life insurance money) when the stock market dropped at the start of COVID with guidance from friends; the portfolio is now $1.1 million ([00:06]–[01:02]).
  • Michelle: "Over the last five years, I've done a little investing. Not a ton, but some. I am at $1.1 million, so I’ve done really well." ([01:02])

2. The Dilemma: What Now?

• Michelle expresses anxiety after hitting the million-dollar mark; with $500,000 in unrealized gains, she's unsure if she should sell or keep going ([01:04]–[01:27]).
  • Michelle: "I kind of got nervous about it... what I should do with it." ([01:04])

3. Dave Ramsey's Core Investing Philosophy

• Host (A, likely Dave Ramsey) praises Michelle’s accomplishment, then cautions that her strategy isn't sustainable per research ([01:27]–[02:12]).
  • Host: "What you’ve pulled off—congratulations—is not sustainable. The research tells us... people who are day trading... 97% of them lose money within a year." ([01:27])
• Instead, Dave advocates for good growth stock mutual funds with wide diversification.

4. Understanding Michelle's Gains & Lack of Diversification

• The majority of her gains come from just four of her twenty stocks—one particularly notable stock is Palantir ([02:55]–[03:31]).
  • Michelle: "Probably most of that is within, like, four stocks that I’ve done really well on…Palantir...is a good portion of it." ([02:55])
  • Host: "20 stocks is not a well diversified portfolio. And four sure is. The devil isn’t. Diversification equals lowered risk." ([03:32])

5. The Risk of Concentration & Advocating for Diversification

• Host (A): Uses metaphors and anecdotes to illustrate the risks:
  • "Your risk is you’re the karate kid. You’re standing on one foot, hoping you can kick, instead of firmly planted on two with a solid base." ([03:32])
  • Explains how mutual funds spread the risk over 450–1,000 stocks rather than only a handful.
  • Emphasizes not over-focusing on a few companies: "You wake up every morning thinking about these companies more than they do." ([05:22])
• Dave analogizes her accomplishment to hitting on the roulette wheel:
  • "It’s akin to I hit on the roulette wheel and I’m up $200 bucks. So I’m walking away from the table and I’m leaving the casino while I’m up." ([05:24])

6. Practical Next Steps & Tax Implication Discussion

• Recommends that Michelle sell, pay capital gains taxes (estimated at $70–80K), and move funds into a diversified mutual fund portfolio ([05:50]–[06:36]).
  • "If it’s making 10% average, it’ll double every seven years. So seven years from now you’ll have $2 million… Just as steady as a rock… instead of you’re at the fair and you’re on the roller coaster..." ([05:56])

7. Anecdotes on Failing to Diversify

• Dave shares about counseling a woman whose $900,000 in one company's 401k stock dropped 38%, slashing her retirement savings because she lacked diversification ([06:37]–[08:53]).
  • "So as that company goes, so goes her future... That’s the kind of thing you’re facing. And diversification is a big basic financial principle… The Bible says...spread your portions to 7, yes to 8, for disaster may come upon the land. Spread it out. Money is like manure—spread out it grows; left in one pile, it stinks." ([08:14])

8. Wisdom on the Pace of Wealth Building

• Host (C): Highlights a proverb to drive home the principle:
  • "Wealth gained hastily will dwindle. Whoever gathers little by little will increase it." ([08:53])

9. Lighthearted Moments & Commentary

• Jokes about insider trading and Nancy Pelosi, making the advice relatable and fun:
  • "Unless you got a crystal ball or you’re Nancy Pelosi, I would not be betting on any single stocks." ([09:09])
  • “If you got four out of twenty answers on a test right, you would get an F.” ([09:42])

Notable Quotes & Memorable Moments

• Michelle: "Over the last five years, I’ve done a little investing... I am at $1.1 million." ([01:02])
• Host (likely Dave Ramsey):
  • "20 stocks is not a well diversified portfolio. And four sure is. The devil isn’t." ([03:32])
  • "Your risk is you’re the karate kid. You’re standing on one foot, hoping you can kick." ([03:32])
  • "Money is like manure—spread out it grows; left in one pile, it stinks." ([08:53])
  • "So unless you got a crystal ball or you’re Nancy Pelosi, I would not be betting on any single stocks." ([09:09])

Timestamps for Key Segments

• Michelle’s story & recent gains: [00:06]–[01:27]
• Initial host reaction & philosophy: [01:27]–[02:12]
• Details on stock composition & risks: [02:55]–[03:32]
• Metaphors and risk explanation: [03:32]–[05:24]
• Recommendation on what to do next: [05:24]–[06:36]
• Anecdote about lack of diversification: [06:37]–[08:53]
• Final wisdom, proverbs & playful banter: [08:53]–[09:42]

Summary

While Michelle’s impressive success story is celebrated, the episode is a masterclass in financial prudence, using her case to reinforce timeless principles: diversify, avoid concentrated stock risks, and build wealth slowly and predictably. The hosts balance admiration for Michelle’s luck with strong guidance to shift to mutual funds, vividly illustrating that luck in picking stocks is not a reliable wealth strategy for most people. The tone is supportive, direct, and at times, humorously blunt, making complex advice accessible and memorable.