In recent years, investment gurus have swelled in number. Expensive conferences, training seminars, and mentorship programs abound. These guys (literally, all guys) promote themselves on Facebook and other forums. I recently decided to start a guru collection in which I screen grab the promotions I see and track them on my Twitter feed with the label #gurucollection. Here are some observations from that process.
Most gurus use materialistic hooks in their promotions. It is common to see flashy sports cars, private jets, luxurious homes, and tailored suits in these advertisements. I get it, flashiness garners attention to help them self-promote. The verbiage often includes references to wealth and financial freedom with the implication that following (paying) the guru will lead to material wealth and a better lifestyle.
There are many similarities among the gurus that show up on my Facebook feed. They are literally all men. Most are Caucasian. Most are under 40 years of age and many are even under 30 (18 in one case). Perhaps those traits are so common because Facebook perceives me as fitting that mold. The gurus claim to be experts in their field despite what is obviously a lack of tested experience due to youth. Most of the real estate gurus are single-family or multifamily property investors. The majority of them offer $997 training packages for $97 to the next 50 people who enter their email addresses within the next 2 hours.
I have asked myself why this matters to me because it definitely could be a waste of my time. I don’t think any of this mattered until I recognized the onslaught of gurus and a few obviously misguided strategies being taught. In thinking deeper about the situation, I have come to see some valuable reasons to observe the gurus.
First, I consciously watch for signs of market sentiment and I have come to see this trend as a sign of the times. Supply does not always reflect demand, but there is clearly demand for at least some of these gurus. Some of them put together large conferences and have high-value followings. Countless newbies on social media and real estate platforms are asking beginner questions, which indicates a collective appetite for guidance. As a participant in the real estate game, I have watched the massive growth of “real estate investors” in certain markets. The influx of new and inexperienced “investors” clearly drives demand for gurus. Once we get a wash out of wannabe investors, most gurus will vanish.
Second, I have been amazed by how young these self-proclaimed experts generally are. Humility seems to be lacking among the gurus and I’m learning how not to act. It is certainly possible to become quite good at something in less than 10 years, but investing takes time and is not easily mastered, if ever. That message doesn’t sell seminars. When these gurus put out messages of ease, short-term gain, and no need for experience, I cringe. Those messages reveal to me the teacher’s short experience playing a long game.
Third, are they all in the business they claim to be experts in, or are they actually just trainers? Maybe I move at a slower pace or have fewer hours in a day, but I don’t think I could run a guru business and a successful real estate company. The two businesses require completely different personas and time that I don’t have. In addition to asset management, my real estate company requires me to spend quiet time in thought. It seems contradictory for gurus to promote high-energy, loud music, laser show seminars for a business that truly requires a quiet spirit and dedicated time in thought.
Finally, these gurus matter to me because I’m curious how they will fare in a recession. What will happen to them? Will they keep being gurus? Will they continue making investments? Will they go bust? How will their messages change? I’m curious to find out.
