Charlie Munger: Finfluencers 'mislead you on purpose' — This is how the late billionaire recommends you build wealth

Charlie Munger: Finfluencers 'mislead you on purpose' — This is how the late billionaire recommends you build wealth JOHANNES EISELE/AFP via Getty Images Jing Pan Sun, June 14, 2026 at 9:15 PM GMT+7 7 min read Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Warren Buffett’s longtime business partner, the late Charlie Munger, had a reputation for being blunt when speaking with shareholders. Whether he was talking about building wealth or expressing skepticism about cryptocurrency, Munger would often speak candidly. During a 2019 shareholder meeting for his company, Daily Journal, Munger shared some choice words about day-trading influencers (1). In short, he wasn’t a fan of social media gurus teaching inexperienced investors how to trade stocks. The ultra-rich use these 5 real estate strategies to build wealth while they sleep — you can start with just $100 The IRS usually taxes gold as a collectible — but this little-known strategy lets you hold physical bullion tax-free. Get your free guide from Priority Gold Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s how to fix it ASAP “If you take the modern world where people are trying to teach you how to come in and trade actively in stocks, well, I regard that as roughly equivalent to trying to induce a bunch of young people to start off on heroin,” he said. “It is really stupid.” Here’s why the legendary investor was “tired” of get-rich-quick gurus. Financial literacy remains a problem nationwide. According to a 2025 Gallup poll, 42% of Americans aged 18 to 29 seek financial advice on social media (2). And survey results from the 2025 TIAA Institute-GFLEC Personal Finance Index found that only 48% of adults could correctly answer more than half the Index’s financial questions (3). Munger thought it was silly for those who are already rich to make more money from “encouraging people to get rich by trading.” “There are [also] people on TV, and they say ‘I have this book that will teach you how to make 300% a year, and all you have to do is pay for shipping,” he told shareholders. “They mislead you on purpose, and I get tired of it. I don’t think it’s right that we deliberately mislead people as much as we do.” Listening to bad financial advice can have very real consequences for those who don’t understand the risk. Rather than trust random advice from a day trader with a large Instagram following, it’s better to find an advisor you can build a direct relationship with. But finding the right finance professional to work with can feel overwhelming — and it should — trusting anyone with your money is a big deal. Advisor.com exists to bridge this gap, helping you find the best advisor for your specific needs. Their free service will match you with a curated list of the best options available to you from their database of thousands, ensuring you find a financial advisor you can trust. Set up a free, no obligation consultation to see if they’re the right fit for you. Read More: Thanks to Jeff Bezos, you can become a landlord for $100 — without the headache of actually being one There’s no shortage of financial advice being shared online. But while social media personalities hype up risky investing trends like cryptocurrency and meme stocks, both Buffett and Munger have long championed simple, passive investing. They’ve consistently argued that most investors would struggle to beat the market, making index funds a compelling choice for the average person. In fact, the S&P 500 has delivered an average annual return of more than 14% over the past 10 years (4). This low-risk, passive investment strategy only requires patience and time. Contrast this with the fact that, from 2003 to 2023, 98.6% of actively managed domestic equity funds underperformed the S&P 500 Equal Weight Index (5). That’s likely one reason why Buffett is a huge proponent of the index. “I recommend the S&P 500 index fund, and have for a long, long time to people — and I've never recommended Berkshire to anybody,” Buffett said at the 2021 Berkshire Hathaway Annual Meeting. “I think a person who doesn’t know anything about stocks at all, I think they ought to buy the S&P 500 index (6).” By consistently investing small amounts in index funds, you can harness the wisdom of Munger and Buffett’s advice. Platforms like Acorns make it easy to begin investing in the kind of index funds they recommend. Acorns is an automated investing app that rounds up your purchases to the nearest dollar and automatically invests the difference, helping build your investing muscle. Acorns offers a range of ETFs, including the Vanguard S&P 500 ETF (VOO), the iShares Core S&P Mid-Cap ETF (IJH) and iShares Core S&P Small-Cap ETF (IJR). Sign up now, and for a limited time, you can receive a $20 bonus investment to kickstart your portfolio. “Investing is where you find a few great companies and then sit on your

Charlie Munger: Finfluencers 'mislead you on purpose' — This is how the late billionaire recommends you build wealth

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