Podcast Summary: The Stacking Benjamins Show

Episode: SB1813 - Private Equity for Regular People: Higher Returns or a Very Expensive Lesson?

Date: March 9, 2026
Hosts: Joe Saul-Sehy, OG, and Doug
Theme: Demystifying Private Equity and Alternative Investments for Everyday Investors

Episode Overview

This episode tackles the risks, misconceptions, and allure of private equity and other alternative investments pitched as “invest like the 1%.” Joe and OG break down why these investments often promise higher returns, the hidden risks for regular investors, and how to properly vet opportunities so you don’t jeopardize your financial independence. The team also touches on recent headlines and fresh cases of investment scams, while sharing laughs and practical advice from the legendary Stacking Benjamins basement.

Key Discussion Points

1. The Allure of “Investing Like the 1%”

• Main question: Should regular people follow the investment tactics of the ultra-wealthy?

• OG explains that the appeal of private equity, pre-IPO stock, and private credit often preys on people feeling "behind" and seeking aggressive ways to catch up.

• The 1% can afford to lose a small portion of their wealth on high-risk bets, unlike most people.

  Quote:

  “You can afford to take these risks, but you can't put 80% of your retirement or your kid's college [fund] in this super aggressive thing with a binary outcome and expect a win.”
  — OG, [18:22]

2. Understanding the Real Risk-Reward Equation

• Investments are compared by their likelihood of total loss vs. their expected return:

  • US Treasuries (safe; ~4% return)
  • S&P 500 (stock market; historically ~10% return, very low chance of zero over 10 years)
  • Private businesses (high risk of total loss; needs much higher expected return to be worth it)

• Key math: Private deals should offer the possibility of much higher returns, but statistically, most will fail.

• Liquidity is a serious issue—money may be entirely locked up, even if the “paper” return looks good.

  Quote:

  “Everything was working great until it stopped…You are one legislation away from making your company go bankrupt.”
  — OG, [18:48]

3. Why These Investments Can Work for the Rich (But Not for You)

• The 1% can diversify across many risky bets, so one home run pays for many failures. Most regular investors can't afford this approach.

• Example: You need to make 9 to 10 bets to hit one 10x winner, but you could lose most or all of the rest.

  Quote:

  “What do you really have to do? You have to do nine investments of $50k to get one to turn to $500k. Well, what did you do? You put $450k in to make $50k?”
  — OG, [20:45]

  Memorable Moment:

  • Joe and OG compare private equity strategies to buying lottery tickets and emphasize the high risks masked by aggressive marketing.

4. Hidden Traps: Illiquidity and Fraud

• Many private investments are illiquid—you can’t access your money until a “liquidity event” that’s outside your control.

• Recent blowups in private real estate, private credit, and notorious schemes (like Tai Lopez's distressed brands venture) highlight risks.

• Just because a pitch sounds like Warren Buffett or leverages a familiar brand doesn’t mean it’s safe.

  Notable Case:

  • Tai Lopez’s acquisition of Radio Shack, Pier 1, and others that turned out to be a Ponzi scheme, as cited in the Wall Street Journal ([28:39]).

5. The Psychology of Vulnerable Investors

• Many get sucked into these “catch up quick” schemes after seeing disappointing results from traditional investments (e.g., slow growth in a 529 college fund).

• Online forums and desperation often drive poor decision-making.

  Quote:

  “This is the target for these investment schemes... You're behind, look at what happens to the average guy…Why would you invest like that? That's crazy.”
  — Joe, [16:56]

SEC’s 10-Step Guide to Evaluating Investments

Detailed walk-through and commentary on the Securities Exchange Commission’s "10 Things to Consider Before You Make Investing Decisions" ([47:32]):

1. Draw a Personal Financial Roadmap:

   • Decide on your real goals before considering an investment opportunity.
   • “Begin with the end in mind,” OG [47:51]

2. Evaluate Your Comfort Zone for Risk:

   • Gut check your willingness to accept possible total loss in exchange for potential return.

3. Consider an Appropriate Investment Mix:

   • Diversification is critical.

4. Be Wary of Heavy Investment in Any One Stock (incl. employer’s):

   • Avoid concentration risk.

5. Create and Maintain an Emergency Fund:

   • Don’t gamble with money you can’t afford to lose.

6. Pay Off High-Interest Credit Cards:

   • A guaranteed, high-return “investment” is paying off debt.

7. Take Advantage of “Free Money” from Employers:

   • Never leave a 401(k) match on the table.

8. Rebalance Portfolio Occasionally:

   • With illiquid investments, rebalancing is often impossible.

9. Stay Vigilant Against Fraud:

   • Anything offering “guaranteed” or unusually high returns deserves extra scrutiny.

10. Stick to Your Investment Policy Statement:

• Protect yourself from making rash, emotional decisions.

Quote:

“It can still be a good investment...it just doesn’t meet my goal.”
— Joe, [48:01]

Notable Quotes & Memorable Segment Highlights

• On Private Credit:

  “When I hear private credit, people go, ‘Ooh, private credit.’ Well, you know who needs private credit? People who aren’t credit worthy…”
  — OG, [22:11]

• On Liquidity Traps:

  “Even if you’re right, you’re still gonna be wrong. Because...you gotta be able to use the money in four years, and there’s a real chance they just go, ‘yeah, sorry, we can’t...’”
  — OG, [24:03]

• On Frauds Pretending to Be the 1%:
  Discussed Tai Lopez's use of flash and social media to draw investments, and how many similar “get rich like the 1%” schemes prey on FOMO ([28:39]–[31:59]).

Community & Career Nuggets

[39:14]–[44:50] Career Segment:

• Interview with restaurateur Danny Meyer via a TikTok clip.
• Key insight: 51% of employee value is “emotional hospitality skills” (kindness, optimism, empathy); 49% is technical.
• Applicability: Whether investing or working, long-term success is more about how you treat people than technical skills alone.

Quote:

“Someone with a high HQ [hospitality quotient] is someone who is happier themselves when they make someone else feel better…The 49% are technical skills. We need both. You gotta have the whole package.”
— Danny Meyer via TikTok, [38:27]

Actionable Takeaways for Listeners

• Don’t Be Seduced by “1%” Schemes: High returns come with hidden risks that the ultra-rich are uniquely equipped to weather.
• Vet Investments Thoroughly: Understand the return, the risk of total loss, the liquidity profile, and whether you can afford for it to go to zero.
• Follow the SEC’s due diligence checklist.
• Diversify and Rebalance: Avoid putting a large chunk of wealth in any illiquid, high-risk bet.
• Beware of Scams: If it sounds too good to be true—like guaranteed returns or minimum 20% annual return—run!
• Community Support: Leverage educational resources and financial communities this podcast and others offer, rather than chasing rumors or peer advice online.

Important Timestamps & Segments

| Time | Segment/Topic | |-------------|----------------------------------------------------------------------| | 05:00-18:22 | Why people chase private equity; the 1% fallacy | | 18:22-24:03 | Binary outcomes, real risks for the wealthy vs. regular investors | | 24:03-28:39 | Liquidity pitfalls and the importance of exit strategy | | 28:39-31:59 | Tai Lopez case study: “Get rich” pitch gone very wrong | | 32:26-39:47 | Due diligence, SEC’s investment evaluation checklist | | 38:27-44:50 | Career & personal development: Emotional intelligence (Danny Meyer) |

Final Thoughts

This episode serves as both a warning and a practical guide. The promise of “private equity for regular people” is often more marketing gimmick than investment reality, and the risk-to-reward ratio is rarely in your favor unless you’re already wealthy enough to absorb large losses. Stick to the basics, diversify, and trust—but verify—before handing your hard-earned money over to the next plausible “can’t miss” opportunity.

Shareworthy Moment

If you know someone tempted by private placements, distressed brand turnarounds, or any “invest like the rich” pitch—send them this episode. It could save their financial future.

(Stacking Benjamins: Bringing fun and wisdom to financial literacy, three times a week, from your mom’s half-finished basement.)