Personal finance author and radio host Dave Ramsey has shared his views on investment strategies, advising against bonds and single stocks. He emphasized his preference for mutual funds as a safer and more lucrative option.
What Happened: Ramsey, in response to a question from a novice investor, Joseph, about his thoughts on bonds and other investment advice, dismissed the idea of bonds being a safer investment than stocks.
He pointed out that the bond market is almost as volatile as the stock market due to fluctuating interest rates, with less promising returns, as per a Ramsey Solutions report titled “Dave Says: Be the Tortoise,” which was posted on Monday.
Ramsey, who has a substantial investment in the market, revealed that he does not own any bonds or single stocks due to the associated risks. Instead, he prefers mutual funds, which typically consist of 90-200 different stocks.
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He also highlighted the benefits of Health Savings Account (HSA) investments in mutual funds, emphasizing his long-term, buy-and-hold approach to investing.
He concluded by advising Joseph to adopt a slow and steady approach to investing, akin to the tortoise in the fable “The Tortoise and the Hare,” as this method consistently yields results.
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“Keep this in the back of your mind, Joseph. If all your broke friends are impressed with your investing, chances are you’re doing it wrong. Or at the very least, you could be doing a whole lot better,” Ramsey said.
Why It Matters: Ramsey’s investment advice aligns with the strategies of other prominent figures in the finance world. For instance, the legendary investor Warren Buffett has often emphasized the importance of long-term investment in diversified stocks for consistent returns.
Similarly, former White House communications director Anthony Scaramucci once experienced the power of long-term investing when his forgotten investment in Microsoft Corporation stock turned into a substantial sum.
Ramsey’s advice also resonates with his previous statements on wealth-building. In a social media post in January 2025, he emphasized the simplicity of becoming a millionaire through consistent investing and reducing wasteful spending, even for those who start later in life.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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