Unmarked Investments Benefit

Scott Galloway believes that constantly checking investment values can negatively impact mental wellbeing, and prefers investments that aren't marked daily. He advocates for diversified investing strategies beyond just U.S. markets and has found particular value in residential real estate.

Investment Philosophy and Strategy

• Recent Investment Success:

  • Only became financially successful in the last 10-15 years
  • Advises young people to use index funds unless they have extraordinary niche knowledge

• Geographic Diversification is Critical:

  • Believes U.S. markets will "go flat for the next decade"
  • Points to P/E ratios: U.S. (26) vs Germany (22), Japan (18), China (14)
  • Criticizes current U.S. administration for "head up your ass scholastic reckless ridiculously fucking stupid decisions"
  • Has been "massively transitioning" U.S. holdings to Asian and European markets
  • Only invests in companies with at least 50% of business abroad

• Residential Real Estate Preference:

  • Would primarily buy residential rental properties if starting over
  • Appreciates the "unnatural lift" real estate gets due to nimbyism
  • Values the ability to leverage 5:1 and depreciate 2-3% annually
  • Owns properties in billionaire hotspots: "palm beach, aspen, new york, london"
  • Believes these locations will continue appreciating as billionaires concentrate there

• Mental Wellness Advantage of Real Estate:

  • "I like the idea of being in investments that aren't marked every day"
  • Checks phone 5-6 times daily for stock prices, which affects his mood
  • "I ruined my day yesterday" over missed stock gains
  • With real estate: "I don't know what they're worth today... maybe they went down 10%, maybe they didn't"
  • Uses real estate as both investment and way to connect with family: "I wanna try and figure out an investment strategy that makes it hard for my boys to avoid me"

• Ideal Investment Approach:

  • "If I had it to do all over again" - would have invested excess cash in:
    • "Massively diversified ETFs all over the world"
    • More residential rental real estate