Financial advisors are supposed to help us get rich, but sometimes they give us bad advice. In some cases, terrible advice has been a golden ticket to wealth, surprisingly. Some people have defied their advisors and reaped the reward, whether it’s a stroke of luck, unconventional thinking, or pure stubbornness.
The best financial wins sometimes come when you go against conventional advice. Experts provide great advice, but these stories prove that different thinking, risk taking, and going with your gut can create surprising wealth. Below are a dozen examples where bad advice seems to have led to financial success.
Investing in ‘Doomed’ Companies
Do you remember when Netflix was just sending you DVDs in the mail and Blockbuster was untouchable? Advisors told clients to avoid investing in such ‘risky’ ventures. The company revolutionized entertainment and those who ignored the advice and bought Netflix stock in its early days saw astronomical returns.
Ignoring Diversification Warnings
As the saying goes, ‘Never put all your eggs in one basket,’ but sometimes hyper focusing pays off. Those who were early Apple employees and invested their entire savings in company stock became millionaires. Some advisors recommended diversification, but some loyalists stayed with Apple—and it paid off big.
Buying “Overpriced” Real Estate
In the early 2000s, some advisors were telling people not to buy property in certain hot markets because they were afraid of bubbles. Those people who bought homes in cities like Austin or Seattle saw their investments double or triple in value.
Keep a ‘Dying’ Business Alive
It is sometimes advised that some entrepreneurs cut their losses when a business struggles. However, many of the success stories are about sticking it out. Take Airbnb for example: Initially, advisors warned against starting a business renting air mattresses. It’s now a multibillion dollar enterprise.
Skipping Bonds for Stocks
Bonds are often the stable part of conservative financial plans, but some investors opted to ignore this advice and bet the farm on stocks. In bull markets, their portfolios outperformed more cautious strategies and they made a lot of money.
Investing in Cryptocurrency
Bitcoin was brushed off as a fad or a gamble by many advisors. The skeptics who ignored this and bought Bitcoin early have made life changing profits. Early adopters are often much wealthier even after market dips.
Not Selling Overvalued Stocks
When stock prices soar, advisors often suggest selling to lock in profits. There were some stubborn investors who refused to sell their ‘overvalued’ tech stocks during downturns. Fast forward a few years, and companies like Amazon and Tesla are soaring to new heights all while rewarding the folks that held on.
Starting a Business During a Recession
Recessions are terrible times to start a business, according to conventional wisdom. But Microsoft and Uber both were started during an economic downturn. Those entrepreneurs who ignored their advisors and started in tough times often found less competition and better deals.
Investment Using Retirement Funds
It’s usually discouraged to withdraw from a 401(k) early because of penalties, but some risk takers used their retirement savings to finance businesses or real estate ventures. Those who did succeed took a small nest egg and turned it into a large fortune, far beyond what traditional returns would have produced.
Avoiding Gold as an ‘Outdated’ Investment
Many will tell you gold is an old fashioned, unproductive asset. However, in inflationary and unpredictable market times, gold always stood its ground. Those who ignored this advice often made out like bandits when the market became volatile.
Holding Onto Collectibles
For many advisers, collectibles – such as art, rare coins or vintage cars – are seen as speculative and illiquid. Still, if you chose wisely, your returns have been amazing. Selling a well chosen painting or classic car at the right time can outperform traditional investments.
Skipping College for Entrepreneurship
One thing that financial advisors often stress is the long term value of a college degree. However, Bill Gates, Mark Zuckerberg and many other successful entrepreneurs dropped out or never went to college. Instead, they spent their time and money on their ideas—and it worked.
Disclaimer: This list is solely the author’s opinion based on research and publicly available information.
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