The Truth is Getting Wealthy with Stocks Is Easy

Summary

Mo of Momentum Finance describes moving from stock picking—including cannabis stocks—to a mostly passive, “set-it-and-forget-it” approach. He and his wife hold two ETFs, with one accounting for nearly 90% of their assets. He describes it as a low-cost, globally diversified BlackRock fund of funds, with exposure to about 8,000 companies across the U.S., Canada, developed markets, and emerging markets.

Their family portfolio is just under $1.5 million. Mo says its growth reflects saving and regular investing, as well as investing proceeds from the sale of a Vancouver property about 4–5 years earlier.

The discussion emphasizes that investors do not need to take concentrated bets or try to beat the market to build wealth. The speakers favor focusing on savings, costs, time horizon, and behavior rather than trying to predict stock or sector winners. They caution that past returns, high distributions, and popular themes do not guarantee future performance.

Framework and Investing Principles

• Assess personal circumstances first: Define financial goals, time horizon, risk tolerance (how you may react to volatility), and risk capacity (how much risk your circumstances can bear).
• Keep near-term funds out of volatile investments: Mo cautions against investing money that may be needed within the next 1–3 years, such as an emergency reserve or funds for a house or wedding.
• Pay yourself first: Set aside and invest money regularly while keeping spending aligned with income.
• Choose simplicity if stock picking is not a fit: Mo says he would have chosen a simpler strategy earlier rather than spending years trying to select winning stocks.
• Use savings and planning—not riskier bets—to improve projections: If a retirement forecast falls short, consider increasing income or reducing expenses rather than automatically turning to individual stocks.
• Avoid comparing portfolios: Comparisons can prompt panic or excessive risk-taking. Focus on a realistic plan and what you can control.
• Balance saving with a “rich life”: Cut spending on things that do not matter to you, and spend deliberately on experiences or purchases that bring genuine joy.

Mo gives 7–8% as an illustrative average-market-return assumption for financial projections, with 6% as a more conservative example. He also mentions hearing 12% used elsewhere and notes that changing the assumption can materially affect a forecast. He says a 50% savings rate could, under the 4% rule and other assumptions, potentially support retirement in 10–15 years. These are examples, not guarantees.

Mo also stresses the benefit of starting early: compounding can produce faster growth later in an investing period.

Funds, Income Strategies, and Risk

• Mo is wary of highly concentrated or leveraged income funds that advertise distributions of 20%, 30%, 40%, or even 50%. He considers such payouts atypical and cautions that high distributions do not necessarily mean strong total returns.
• He says some of these funds have substantially higher fees than low-cost index funds, while concentrated holdings and leverage can increase volatility.
• In his view, covered-call strategies may be better suited to sideways markets. They can limit upside when markets rise sharply, so he recommends comparing a covered-call fund’s performance with that of its underlying assets.
• Investors should evaluate total return, not just cash distributions. A fund paying income while its price falls or barely breaks even may underperform a rising market. Gradually selling shares is discussed as an alternative way to generate cash flow.
• Mo generally avoids thematic or sector-focused ETFs, including those tied to AI, technology, aerospace, and space tourism. He warns that a popular industry does not guarantee strong stock returns and that investors may buy after hype has peaked.
• He cites the history of ARK funds/Cathie Wood as an example of a strategy that had a period of strong performance followed by weaker results. He describes meme-stock investing as often driven more by hype than fundamentals.
• Both speakers stress that market declines are normal. Mo asks whether investors could stay invested through drops of 10%, 15%, or nearly 20% or more, rather than panic-selling and trying to re-enter later. Recovery timing is uncertain.
• The host says his own growth-oriented, concentrated strategy is not suitable for most viewers, estimating that he would recommend it to only a small minority. This is presented as his personal view, not Mo’s approach.

Assets and Instruments Mentioned

• ETFs: Mo’s two holdings, including a broadly diversified BlackRock fund of funds; no tickers are given.
• Stocks: Individual stocks generally, including cannabis stocks from Mo’s early investing period.
• Alphabet/Google: Discussed in the Seeking Alpha sponsorship segment as a company the host is bullish on.
• Berkshire Hathaway: Mentioned in a discussion of the difficulty of consistently outperforming the broad market.
• S&P 500: Used as a broad-market comparison.
• Covered-call funds, options, and leveraged income funds: Discussed as higher-cost or higher-risk income strategies.
• Thematic and sector ETFs: AI, technology, aerospace, and space tourism are given as examples.
• Meme stocks and cryptocurrency: Mentioned as speculative or alternative investments; Mo says he avoided meme stocks.
• Real estate: Mo sold a Vancouver property; real estate is also mentioned as an alternative investment.

The host says there are roughly 5,000–5,200 ETFs available while discussing the growth of leveraged and thematic products.

Disclosures and Sponsorship

The host states that the episode is sponsored and is for educational and informational purposes only, not financial advice. Investors should do their own due diligence and are responsible for their decisions.

The Seeking Alpha segment promotes Premium, including quantitative rankings covering 100+ metrics, an AI research tool, a 7-day free trial, and a 10% discount. No individualized recommendation is made.

Presenters and Sources Mentioned

• Ari Gutman — host of Masters of the Market
• Mo (Moe) of Momentum Finance — guest
• Other people and sources referenced: Warren Buffett, Ramit Sethi, Cathie Wood/ARK, Mr. Financial, Crazy Canuck, and media or platforms including Bloomberg, Yahoo Finance, Reddit, and WallStreetBets.