The “Stupid” Investment Plan for Making Millions

Dear Money & Crisis Reader,

I’ve never met anyone quite like James Altucher.

He’s one of the few truly successful people that will admit he’s made some mistakes.

I’m not talking about itty-bitty, forgetting-to-buy-the-milk kind of mistakes here.

I’m talking about the kind of mistakes that would have ruined another man’s life forever… like losing millions of dollars overnight.

But James has always had a talent for making money. And in the last few years he’s developed a strategy for yanking $3,000 a month out of the stock market.

This strategy has a 91% success rate. And it’s based entirely on a single piece of advice he got all the way back in 2012.

I’ll let James tell you all about it.

All the best,

Owen Sullivan

Owen Sullivan
Editor, Money & Crisis

P.S.Click here if you’d like to try James’s powerful strategy for yourself and pull up to $36,000 a year out of the stock market.

The Best Financial Advice I Ever Got

By James Altucher

James Altucher

“You are stupid”

This is the one piece of advice that has made me millions.

That sounds like bragging. “Millions.” Blech. But I have to use the word. Because this is the most important advice ever.

I wish someone had told me in 2010, in 2008, in 2005, in 2002, in 2000 or in 1997.

But someone told me in 2012 and it’s been straight up for me financially ever since.

A Stupid Resume

If I had a resume, it would just be a list of all the times I was stupid.

If “stupid” is a bad word, I apologize. But I’m not being self-deprecating or humble.

I found out after 20 years of hard work that I am a big idiot.

  • When I first started a technology company in the 90s I thought I was smart (I had been a technologist and software guy since the 80s).
  • When I first was a venture capitalist I thought I was smart because I had sold a company and was so good at technology.
  • When I first was a day trader I thought I had a great model of the stock markets that I had programmed. But I didn’t realize the importance of psychology.
  • When I ran a hedge fund, I thought I was a good judge of people.
  • When I invested in angel investments, I thought I was smart enough to know about money management.

Greed, lack of money management, lack of understanding of bigger business models, laziness, bad people judgment, poor ability to handle failure, little understanding of cycles in markets…all of these things led to me being stupid.

And since everyone thought I was smart, I was always afraid to act stupid.

I always wore a mask pretending to be smart. Pretending to be a GENIUS!

Like if someone was explaining a sophisticated technology, I’d be the first one to try and ask some stupid question to prove to my colleagues that I was the smart guy.

Explain It Like I’m Nine

I had a partner at my venture capital firm. The firm was called “212 Ventures.”

We had four partners and four associates and managed about $125 million for major investors.

We sucked.


One of my partners would go to every meeting, get the business explained to him, and he’d hold up his hand.

“Wait a second,” he’d say, “Explain this to me again like I’m a third grader.”

And he wouldn’t let them stop until they were able to explain everything as if he were a third grader and he would finally understand.

I’d smirk at his stupidity.

Now I realize he was the smartest man in the room. I was the stupidest.

All of my investment decisions back then lost money. 100% of them.

When they shut the VC firm down (all the investors pulled their money) my “stupid” colleague was smart enough to get a massive payout for all of us despite our non-stop failure.

Suddenly, I was glad he was so “stupid.”

The “Stupid” Investment Plan for Making Millions

Now that I know I’m stupid, I don’t make any decisions for myself.

Instead, I find people who are smarter than me to help.

For instance, when I invested in Buddy Media:

  • I looked to someone smarter than me. The CEO had already built and sold two other companies. And I knew he had good ideas because I had been stealing them for my own business and using them successfully for years.
  • I found co-investors smarter than me. Peter Thiel (founder of PayPal and initial investor in Facebook) and Mark Pincus (founder of Zynga) both billionaires, were investing along side of me. No matter how smart I thought I was, they were more successful, smarter investors who did more due diligence than me.

And that’s it. Everyone has to be smarter than me for me to get involved.

When I invested in that company, it was worth $4 million. When the company sold in 2012, it was worth almost $900 million.

Once a company I invest in calls me for help I know that I’m in trouble. I want the CEO to NOT return my calls.

He should be busy being smart. That’s why he’s in that business and not stupid me.

Since I decided I was stupid, this is what happened: 100% of my investments have worked out. 100%!

When I start a business, I make sure everyone I hire is smarter than me, so I can learn.

When I do a podcast, I assume my guests are all smarter than me, to feed my curiosity. I’m blessed to have so many of my superheroes answer all my questions on my podcast.

The best advice I’ve gotten lately (from billionaires, super-comedians, artists, athletes): be honest, be who you are, be humble, be curious, sincerely network and show up every day.

It’s that simple.


James Altucher

James Altucher

Editor’s note: After hearing that hard-to-swallow piece of advice, James has devised a simple strategy to rip $3,000 from the stock market every month. Click here and he’ll show you how to do it yourself — and bank an extra $36,000 a year.

Don’t delay. You only have until midnight Sunday to take him up on his offer.

Chris Campbell

Written By Owen Sullivan

Owen Sullivan isn’t a millionaire or one of the Wall Street elite. He was just one of the many folks who was hit hard when the housing bubble burst… and decided he was never going to let that happen again. Since then, he’s worked with industry experts to develop strategies and techniques to bulletproof his finances — and yours — against the next crisis. His methods don’t require years of financial experience. These are simple strategies that anyone can follow. After all, financial prepping shouldn’t be reserved for a select few.