Grant Cardone isn’t pulling punches when it comes to the state of the U.S. stock market. Speaking on a recent episode of “The Wolf of All Streets” podcast with Scott Melker, the real estate mogul and entrepreneur said he's long lost faith in traditional equities.
Cardone Doubles Down On Hard Assets Like Real Estate and Bitcoin
“I don’t understand the stock market. I just can’t make sense of it. I've been watching this game since I was 20 years old, and I don’t understand stocks and the valuation, and it's gotten worse over the last 10 years,” Cardone said. He called out the rise of what he described as “zombie companies” — businesses that stay afloat thanks to debt and artificial valuation methods.
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“It's just financial engineering on steroids,” he said. “A piece of paper took a piece of fiat, turned it into another piece of paper, had some bank put their name behind it rather than God and the military, and somehow it goes up more than the piece of paper that’s got God on it. I don’t get it.”
Cardone said he’s focsed instead on real estate and Bitcoin. He's spent the past 25 years accumulating 14,000 apartments and recently began merging Bitcoin with real estate holdings in a series of structured investment funds.
“Since I was 30 years old, I’ve been converting fiat to real estate. That was, I believe, better than the paper,” he said. Cardone has since started allocating a portion of his real estate cash flow into monthly Bitcoin purchases.
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The Case Against Diversification For Young People
Cardone also challenged conventional investment wisdom, saying young people should avoid diversifying too early. “Young people should not be diversifying. They should be going all in on one thing,” he said.
Instead of spreading money across multiple assets, he advises focusing on self-development first. “The number one most important thing you can invest in is yourself,” he said. “If you’re not confident in your ability to know ‘boom, that’s the right road to take,’ you're going to get confused.”
Despite the growing popularity of Bitcoin-focused treasury models, Cardone criticized the trend, arguing that many of these companies are poorly managed and overleveraged. "It's a gold rush," he said. "At the end of the day, there needs to be something real there. And if there's not, everybody will wake up one day and say, ‘Why am I paying a multiple for the Bitcoin and there's no company behind it?'"
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Cardone’s long-term vision is a hybrid portfolio where Bitcoin and real estate sit side by side. His fifth investment fund is now structured as one-third debt, one-third real estate equity, and one-third Bitcoin.
“All I did was convert something that wasn't mine — fiat — into something else that was better,” he said.
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