- Serial entrepreneur Gary Vaynerchuk was an early investor in Twitter, Uber, Tumblr and Snap.
- The VaynerMedia CEO believes investing in brands or products you like and understand is key.
- Patience, he says, is also required.
- Over the last 20 years the S&P 500 has had an annualized return of roughly 7.2%
Gary Vaynerchuk says he "spends very little time looking backward." That's because the serial entrepreneur and investor lives his life inspiring millions around the world to work hard, create value, live a better life and find happiness.
While Vaynerchuk, whose net worth is estimated at around $160 million, lives by this philosophy every day — he is the CEO and co-founder of global digital advertising agency VaynerMedia, four-time New York Times bestselling author, "DailyVee" vlog host and partner of a venture capital fund called VaynerRSE — he also has an eye for great ideas: An early investor in Twitter, Tumblr, Uber and Snap, his VaynerRSE investment portfolio currently lists near 80 companies, including international digital wallet and exchange Coinbase and monthly cosmetics subscription service Birchbox.
His tried-and-true method? Invest in something you like and understand — and be patient, he says. "Investing plays out if you're not thinking this way: 'OK, I'm going to put in $3,000, but in three years when I buy a house, its going to be $9,000 or $6,000 and I'm gonna strike.' You're just so vulnerable to macro things that have nothing to do with even the health of that actual business." Think geopolitical tensions or natural disasters that could disrupt single sectors.
The answer? "Put it super-duper long term, and do it sooner rather than later," he says, adding that even if some of your investments do not yield immediate returns, in the long run they will. "Unless America disappears off the face of the Earth in a very long period of time, it is probably a good bet."
"You may pick the wrong company, and this is why you want to diversify."
On average over the last 20 years, the S&P 500 has produced an annualized return of 7.2%. Dollar cost averaging, putting the same amount of money in markets every month is a great example of this strategy.
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Vaynerchuk admits that he is "in a zero-sum game" when it comes to knowing anything about Wall Street — "Basically, every time I buy anything, I decide it's never coming back," he says — but he firmly believes that investing in companies and brands he understands is key. "A lot of people historically have done fairly well investing in companies they just genuinely like, whether it's been Starbucks or Nike."
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.