The 6 BEST Investments To 10X In 2022

What's up, Grandma's guys? Here, so in the last year, the stock market is up another 30 percent, Ethereum is up four hundred percent, AMC is up a thousand percent, and Dogecoin is up a whopping 3821.

Now, even though I cannot promise that I'll be able to pick the next home run investment that allows you to turn ten thousand dollars into a Lamborghini Aventador SVJ, I can tell you about the best investments that you could make as soon as possible that are historically proven to work. Even if all you do is invest on January 1st of every year and then do absolutely nothing, this is especially important because there's a lot of concern lately about an over-inflated market, sky-high real estate values, all-time highs, and a 100-year everything bubble that seemingly popped up out of nowhere.

So, it's more important than ever to stick with the investments that work and have the best chance at making you the most amount of money over these next 12 months. But before we begin, I want to share a quick message from the sponsor of today's video—the like button.

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First: index funds. Now, I realize it sounds like a broken record because I talk about this investment all the time, but that's because historically, it works really, really well. Even when everything is trading at an all-time high, it's so good, in fact, that this is where I invested the majority of my own money throughout the last year, and it outperformed a lot of my other investments. Plus, the premise is really simple: an index fund is basically just a big basket of stocks that you could buy into for one low price instantaneously.

That way, you get to own a little bit of everything without having to buy them each individually at their full price. For example, if you wanted to buy one share of every single company in the S&P 500, that would cost you a staggering $110,127.77. Or, you could just go and buy something like SPY, which for $477 tracks them all at a price that isn't a literal house.

The advantage is by doing this, you get the diversification of owning 500 different companies, and this single investment is shown to outperform 95 percent of actively managed funds. Meaning, if all you do is make this one single investment at the beginning of January every single year, you're probably going to make a lot more money than your friends over at WallStreetBets.

Now, of course, there is absolutely the stigma out there that we're trading at all-time highs. Now, is a market bubble? It's a bad time to invest. But the reality is studies show that since 1950, the market has hit an all-time high on 7.5 percent of all trading days. Not to mention, if we include the time the market spends within one percent of an all-time high, that encompasses one out of every five trading days.

Even more convincing is that since 1988, the market paid higher returns for investing at all-time highs versus just on a random day, and 66 percent of the time, Vanguard found that you're going to make more money investing everything all at once immediately than waiting for the perfect time to buy in even lower.

Now, sure, of course, anything can happen, and you have a 33 chance of the market closing lower at the end of the year. But if history is any indication, you're better off just investing immediately and then counting your profits at the end of the year.

Second: individual stocks. I say this because, let's be real, even though most of us know we're probably better off just buying index funds and then doing absolutely nothing, that doesn't stop almost all of us from placing our bets and then seeing if we could do even better. And if you pick the right ones, well, yeah, you could end up making a lot of money.

For example, in the beginning of 2021, I invested a hundred thousand dollars in stocks picked at random by a monkey, and one year later, that portfolio's returned 41. Other stocks like GameStop have rallied over 700 percent, Moderna is up 115, Ford is up 133, and with the right selection, you could wind up making a decent amount of money throughout the next year.

However, as I'm sure you already know, the higher the return, the higher the risk, and if you pick wrong, you could wind up losing a lot. For instance, C3.ai is down 77 percent, Peloton has dropped 76 percent, Robinhood has fallen 50, and it becomes pretty easy to lose a significant amount of your investment once you buy the dip and it keeps on dipping.

So, my recommendation is that if you are going to take the chance on a few individual companies, there is a way to do it with the highest likelihood of coming out profitable. That would be:

1. Don’t invest everything. Ideally, you should only allocate a small part of your portfolio to more speculative investments.

This way, if a few of them don't do well, you're not risking everything. But if they do well, then you're boosting your return without getting carried away.

2. Don’t invest in hype. I have to say, every single time I see some momentum gathering online or some upcoming highly anticipated event that's expected to send the stock price soaring through the moon, it turns out to be already priced in, and the stock price plummets while you're left holding the bag.

The best way to sum things up here is that the current share price is often a reflection of the current financials multiplied by its future expectation. If the expectation is that a company is soon about to be worth five times their current trading price, then most likely you're already paying a premium for that public information.

3. Always understand what you're investing in. Now, obviously, my monkey portfolio is the exception because I made that investment to prove that absolutely no one has any idea what they're talking about. But besides that, don't invest in a company because everyone else is talking about it or because your favorite influencer likes it and they have a history of being right.

At least understand what you're buying, how they make money, how long you plan to hold them for, and how much you're prepared to lose. If you follow those three rules, it should give you a significantly higher chance of coming out ahead, profitable.

And to at least get you started in the right direction, feel free to use the link down below in the description and claim your free stock worth all the way up to a thousand dollars when you sign up for Public and use the code GRAHAM. Enjoy!

Now, third: what most people forget is that when you make a lot of money in the markets, you're also going to have to pay taxes—sometimes up to 50 percent in California. So, as a way to avoid that, you should first be investing in a Roth IRA.

It has a quick background: the Roth IRA is basically just a retirement account that allows you to contribute up to six thousand dollars a year in after-tax money, and then all the profit you make within that account is completely tax-free by the age of 59 and a half.

As an example, let's just say you max out a Roth IRA at six thousand dollars a year beginning at the age of 20, and all you do is invest in an index fund that makes you seven percent annual. By the age of 60 years old, you would have one million three hundred and seventy-one thousand dollars completely tax-free.

If you had done this in any other account, you would be taxed on that one million one hundred and thirty-one thousand dollars worth of profit. So, even at a 15 long-term capital gains tax rate, that's still 169 thousand dollars gone to taxes because you didn't listen to this video. Just think of all the things you could buy with 169,000, like this house in Kentucky, this Ferrari 458, or this collection of Charizards.

And let's be real, chances are taxes are only going up by the time we're older, so now is the time to open this account and save as much money as you can today.

The fourth: there's no way we could have a best investments video without talking about one of the highest-yielding investments over the last decade, and that would be cryptocurrency. Even though we've all seen the stories about people becoming multimillionaires with Dogecoin, retiring in their 30s from an 8,000 investment in Shiba Inu, or otherwise becoming a teenage millionaire with Bitcoin, the truth is studies show that you don't need to go all in with a lottery ticket-like hope of making millions to do well.

And from all the data we have, these are the best cryptocurrency investments to make based on science:

1. Research shows that you don't have to invest a lot of money to make a big difference. In fact, Fidelity found that just a five percent allocation to Bitcoin would have boosted the cumulative return of a traditional portfolio by 65 percent since 2014. Even despite the sell-offs along the way.

On top of that, a New York global investment firm even found that their best performing portfolio only contained three percent Bitcoin, and that boosted their accounts value by 50 percent.

2. Even though it might be tempting to throw it all in something like Santa Dash and hope that next Christmas is better than this year, most data shows that you're best off sticking with the top 10 cryptocurrencies by market cap and then doing absolutely nothing.

As you can see here, a long-term hold, regardless of the year you first invested, has so far produced a positive return in excess of that of the stock market. This leads us to believe that the most effective way to invest is to buy them all and wait.

However, one more thing to remember from this is that throughout the top 10, historically, the majority of those returns have still come from both Bitcoin and Ethereum, which throughout the last five years would have given you a 780 percent and a 2,623 percent return respectively just by investing a hundred dollars a week consistently.

So, for anybody who wants to invest in cryptocurrency, this statistically is the safest approach, but the more you wander from that top five, as every study has shown us, the bigger the risk but also potentially the bigger the return.

That's why I believe that cryptocurrency can be a great investment in 2022, but only invest a small portion of your portfolio and stick with the safest, largest, most established coins out there. That way, you get the highest return for the amount of risk you're willing to take.

The fifth: we also have alternative investments, which throughout the last year have done quite well. For example, we all saw what happened when Logan Paul showcased his Pokémon collection and ignited a surge in demand for nostalgic collectibles, which have already been appreciating at a rather consistent pace.

Or classic cars which have nearly kept pace with the S&P 500 over the last 10 years. Even the right contemporary art has appreciated 14 percent annually since 1995, leading people to believe that this is something to be taken very seriously.

Don't even know, this could absolutely be a very speculative, highly liquid investment that you have to research inside and out. It is possible to diversify and invest some of your money in this category and do quite well.

For example, watch lovers would be happy to know that a Rolex Daytona has outperformed the stock market in 2021. Just buy a watch and enjoy it, and that'll make you money each and every second. You can also consider buying and developing land or products in the metaverse, including Decentraland or Sandbox.

Buying certain NFTs, purchasing rare comics, posters, remember memorabilia—the list goes on. Like, did you know there's a massive marketplace for vintage posters where some of them now sell for millions of dollars? This is also one of the reasons why I bought this 2005 Ford GT nine months ago, because not only is it a fun car to drive on the weekends, but it's also worth about 25 percent more than what I paid for it.

The same thing could also be said about manual transmission Lamborghinis, a six-speed F430, or an SLS AMG Mercedes as they become more and more rare.

Now, the downside of the collectible market is that it's highly illiquid, and you have to wait for the right buyer at the right time. So, in the event you need cash immediately, the choice is either to sell it at such a rock-bottom price to someone who wants a deal, or you have to wait.

For that reason, I don't recommend investing more than five percent of your net worth in collectible assets just in case something happens and you need the money. But if you know what you're doing or you have the money to buy the six-speed Ferrari, you could end up doing quite well long-term.

And finally, six: we got real estate. Now, yes, it is true that prices have gone up 18.4 percent year over year, interest rates are likely to begin climbing, and inventory is at a record low. Although, it is still possible to buy a home as a good investment, and this is where I plan to invest most of my money throughout the next year.

First, everybody needs a place to live. Housing is something that a company can't just go and magically replace one day. It can't be outsourced, and it can't be made cheaper online. The reality is all of us need a home, and if we're not renting, we're buying. So, the market is literally everybody.

Second, the bank will lend you most of the money that you need to buy the house as long as you could come up with a 10 to 20 down payment. This gives a huge advantage over stocks in that you could have complete control over the entire asset without having to buy the entire thing upfront, and without having the risk of being margin called—as long as you just make your mortgage payments.

Third, since you have complete control over the property, you could make strategic renovations that will increase the home's value or increase the amount that you could charge for rent. For example, when I first started buying real estate, I would purposely look for places that were a bit worn down, that were old, and with a few months of work, they could be turned into looking brand new, and that will increase the property's value in the process.

Fourth, the property could also serve multiple purposes in that you could move in as a cheaper alternative to renting, or you could rent it out for an immediate return on your money. I actually took this a step further and combined the two by buying a two-unit building, fixing it up, moving in one side, and then renting out the other to cover my entire cost of living.

This is how I was essentially able to live for free while getting to own a building in the middle of Los Angeles, and throughout my entire career, I've just repeated this process over and over and over again while I bought multiple properties in the process.

Fifth, with all of this talk about high inflation, real estate is a great hedge against that. That's because when you get a loan from a bank, you're borrowing money and then paying it back over 30 years. But over 30 years, the value of your money in the future is going to be worth a lot less than it is today, thanks to inflation, making that a lot easier to pay off over time.

And lastly, number six: the tax savings are incredible in real estate. Every expense you have on the property is a write-off against your rental income, like your mortgage interest payments, property taxes, insurance, repairs, maintenance, property manager—you name it.

Not to mention you could also depreciate the value of the property over 27 and a half years. So, if the property's worth $275,000, that essentially means the first ten thousand dollars you make in that property is completely tax-free.

That's why I've sunk so much money into real estate over the last decades, and why it continues to be one of my all-time favorite investments—besides subscribing here if you haven't done that already and hitting the like button for the YouTube algorithm.

So with that said, you guys, thank you so much for watching. Feel free to also add me on Instagram and to my second channel, The Graham Stefan Show. I post there every single day I'm not posting here, so if you want to see a brand new video from me every single day, make sure to subscribe to that.

Thank you so much for watching, and until next time!