Dave Ramsey said he only has 3 investments and doesn’t need stock tips from ‘your broke golfing buddy’ — here’s his simple strategy

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Dave Ramsey, the renowned financial advisor and radio show host, has built a reputation for advocating straightforward and simple investment strategies.

His philosophy is rooted in the belief that investors don’t need complicated maneuvers and sophisticated assets to perform well.

“I don’t play single stocks, I don’t screw around with gold, I don’t mess with Bitcoin and I don’t need your stock tip from your broke golfing buddy with an opinion,” he said in an off-the-cuff rant during an episode of The Ramsey Show.

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For those who insist he “missed out” on better opportunities, Ramsey had a clear message: “Didn’t miss a thing! I’ll set my net worth down beside yours while you mouth off!”

Instead of chasing “hot” asset classes, the financial guru says his net worth, which is estimated at $200 million, is concentrated in only three investments. Here’s a closer look at his streamlined portfolio.

Debt-free real estate

Ramsey is more passionate about real estate than any other asset class. He acquired his real estate license when he turned 18 and was already a millionaire by the time he was 26.cHowever, a brush with bankruptcy left him permanently wary of leverage.

Ramsey now insists his vast real estate portfolio is owned outright with no mortgages attached.

Ramsey’s approach isn’t common but his fascination with real estate is understandable. The U.S. residential real estate market is worth $52 trillion in aggregate, according to Zillow. That makes it a larger asset class than equities since the combined value of all public companies is roughly $50 trillion.

For most ordinary American families, their primary residence is their largest asset, according to analysis by the Pew Research Centre. Like Ramsey, a whopping 39.3% of homeowners own their property without a mortgage, according to the U.S. Census data.

However, with rising interest rates and home prices, it’s become increasingly difficult for first-time homebuyers to buy property without taking on a large and expensive mortgage.

If you’re looking for exposure to this asset class without purchasing physical property or taking on the responsibilities of a landlord, consider fractional investing with a platform like Ark7.

Ark7 lets investors purchase shares of rental homes to ​​earn monthly cash distributions and potentially benefit from the real estate market without the work of owning a home.

The shares start at around $20, and with in-depth information about each listing, you can feel confident that you’re making the right choice for your portfolio.

Plus, Ark7 invests in each property it lists, so you can be sure they’re committed to investor success.

If you’d rather invest in the appreciating value of owner-occupied homes, Cityfunds is a platform that allows you to invest in residential properties in top U.S. cities — like Denver, Austin, Nashville and Miami. Cityfunds secures an interest in the home’s future value, and as the home value appreciates, so does the value of the Cityfunds investment.

The company allows you to invest in the hot housing market of a city you love for as little as $500.

For accredited investors, the options for investing expand to cover commercial property as well.

Platforms like First National Realty Partners (FNRP) let you get in on professionally-vetted deals in necessity-based real estate — such as grocery stores or health-care facilities.

FNRP has developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart and Whole Foods, and provides insights into the best properties both on and off-market.

As a private equity firm, FNRP acts as the deal leader, providing expertise, doing the legwork and streamlining the process, while investors can passively collect distribution income.

Want to take a more set-it-and-forget-it approach to diversifying your portfolio with private assets, including real estate?

With Fundrise you get access to an expansive portfolio of alternative investment opportunities spanning real estate, private debt and venture capital.

With over two million investors and managing over $7 billion in real estate assets alone, Fundrise is an accessible way to diversify your portfolio with the potential of yielding dividends every quarter.

To get started, all you have to do is share some details about financial background, risk tolerance and investment preferences, then Fundrise will build a portfolio for you that aligns with your goals.

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Mutual funds

Ramsey has often mentioned his preference for mutual funds that track the broader stock market. Instead of stock picking, he believes a passive investing approach is better.

This theory has become increasingly popular. Passive investment strategies now have more assets under management than actively invested funds, according to Morningstar. The Vanguard S&P 500 ETF, a low-cost fund that simply tracks the S&P 500 index, has delivered a compounded annual growth rate of 14.51% since 2010.

Adding some exposure to the stock market through index funds could be another way to accelerate your wealth-creation journey.

If you’re less than bullish on Ramsey’s dislike for stocks and want to take a more hands-on approach with your portfolio, eToro is worth considering.

This platform lets you trade stocks, ETFs and crypto, with the added benefit of CopyTrade – a feature that allows you to mirror the strategies of top investors.

As one of the world’s largest trading communities, eToro boasts over 30 million members. With its power tools, user-friendly features, educational resources and transparent fees, getting started with active trading is both simple and affordable.

Need some guidance before you make your next big market move?

The team of former hedge fund analysts and experts at Moby spend hundreds of hours each week sifting through financial news and data to provide top-tier stock and crypto reports to keep you up-to-date on what’s moving the markets.

Moby’s superior research can help you reduce the guesswork when selecting stocks and ETFs. In four years, across almost 400 stock picks, Moby’s recommendations have beaten the S&P 500 by almost 12%, on average.

With their easy-to-understand formats, you can become a wiser investor in just five minutes, backed by a 30-day money back guarantee.

His business

Like many ultra-wealthy individuals, Ramsey’s business ventures are a major contributor to his immense net worth. In 2024, he estimates the business will generate roughly $300 million in revenue. Since it’s a private company, it’s difficult to confirm its valuation and how much Ramsey’s personal stake in the business is worth.

Business interests account for 41% of total wealth for those in the top 1%, according to the Federal Reserve’s Survey of Consumer Finances. In other words, starting or buying a successful business can be a great way to build a fortune.

Fortunately, Americans are highly entrepreneurial. According to the U.S. Chamber of Commerce, 5.5 million new businesses were registered in 2023 alone. Meanwhile, 93% of working Americans have a side hustle, and 44% rely on income from their side hustle to cover bills and make ends meet, according to a recent Insuranks.com survey.

Getting involved in this entrepreneurial wave could be beneficial for your personal finances.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.