The stock market isn’t where people build real wealth—it’s where they transfer it. This might sound controversial, but after decades in the financial industry and becoming a multimillionaire by age 26, I’ve seen how the system truly works.
Let me be clear: when you buy stocks, you’re often funding someone else’s payday, not creating your own. The wealthiest individuals in our society don’t make their fortunes through public market investing. They build private companies and then cash out when those companies go public.
The IPO Illusion
Consider Mark Zuckerberg. He didn’t need your money to build Facebook. By the time Facebook hit the stock market, the astronomical gains were already locked in. The IPO wasn’t your golden opportunity—it was his exit strategy.
This pattern repeats with nearly every initial public offering:
- The 10x, 50x, and 100x returns happen while companies are still private
- Insiders get preferential terms and access to information you’ll never see
- Venture capitalists and early employees receive equity at pennies on the dollar
- Board members make decisions that benefit themselves first
Meanwhile, retail investors like you are left with a brokerage app and the hope that someone will eventually pay more for your shares than you did. That’s not investing—that’s speculation.
The System Is Designed This Way
I’m not against investing altogether. What I oppose is the mindless transfer of wealth and blind trust in a system built to favor the few at the expense of the many.
The biggest gains happen before companies go public. By the time you can buy shares, the insiders are already planning their exit.
The financial industry has created a narrative that buying stocks is how average people build wealth. This narrative serves those who profit from your participation—brokerages collecting fees, financial media selling advertisements, and company insiders looking for liquidity.
When you understand this dynamic, you realize why the wealth gap continues to widen. The truly wealthy aren’t putting their money into mutual funds and ETFs. They’re creating assets, building businesses, and controlling their investments.
Building Real Wealth
If you want to create genuine wealth, stop buying into someone else’s exit strategy. Instead:
- Develop your skills and expertise in areas where you can add unique value
- Discover your “investor DNA”—the investment approach that aligns with your strengths
- Create assets you control rather than passive ownership in businesses you don’t
- Focus on cash flow rather than speculative appreciation
The financial education most people receive is designed to make them good consumers of financial products, not sophisticated wealth creators. Breaking free from this mindset is the first step toward genuine financial independence.
My own wealth didn’t come from picking stocks or timing the market. It came from building businesses, developing intellectual property, and creating systems that generate ongoing value. These are strategies anyone can learn, but few are taught.
Real wealth comes from ownership and control. When you own a business, you make the decisions about how value is created and distributed. When you own stocks, you’re at the mercy of management teams who may not have your interests at heart.
The next time you’re tempted to put money into the stock market, ask yourself: Am I building wealth, or am I simply transferring my wealth to those who got in earlier and on better terms? The answer might change how you approach your financial future forever.
