Editor’s note: Wide Moat Research ran a version of this article two years ago on September 13, 2024. We wish it was no longer relevant. But con men are as busy as ever trying to drain you of your money. And since you’ve probably got more free time today than most Mondays, let’s review what you should avoid while you’re scrolling through your social media feeds.
Quick! Did you hear about the latest “free money” hack?
It’s true! I saw it on TikTok!
The other week, users discovered that, if you have a Chase bank account, you can write yourself a large check, deposit it at a Chase ATM, and immediately withdraw the funds. The ATM, after checking the check but before the check actually clears, will dutifully spit out cold hard cash.
There’s a glitch in the system!
People on social media were therefore flocking to their nearest ATM locations to pull thousands of dollars out of the machines. It was the easiest money they’d ever gotten their hands on.
Better yet, it was free!
Unfortunately, this “simple money hack” also goes by another name: check fraud. Which is, unsurprisingly, very illegal. Depending on the amount drawn, it could even easily be a felony.
That’s going to get you more than a slap on the wrist. Trust me.
Because of their greed, certain TikTok users ruined their lives over this advice. All because they thought they could get rich in an instant.
So let this be a public service announcement: If you ever hear about some financial “hack” or “glitch” on social media – or anywhere else – be very, very, very skeptical.
If it sounds too good to be true, it probably is.
There are no shortcuts
There are no shortcuts to true wealth creation.
That doesn’t mean you can’t grow your portfolio with great investments. But it takes both time and discipline.
Be wary of anybody who tells you differently. No matter how trustworthy they sound.
While cons and conmen have been around for millennia, so-called “money hacks” have been gaining popularity on social media. A lot of this behavior seemed to start during Covid when people were stuck at home, bored out of their minds, with several thousand dollars of government helicopter money burning holes in their pocket.
The world seemed like it was falling apart. People lost hope. And so they threw caution to the wind because of YOLO (you only live once) attitudes.
As a result, we saw the popularity of meme stocks, highly speculative assets like cryptocurrencies, and risky options strategies rise. Some brokers even leaned into this.
Robinhood in particular exploded in popularity – in part by “gamifying” investing. If offered bright colors, flashing lights, and animated fireworks whenever you placed a trade. Almost as if you were using a slot machine.
On social media, I also saw a lot of posts about house-hacking and other high-leverage real estate bets. Interest rates were at historic lows, and people were looking to game the system.
The trend of “TikTok investing” became so prevalent that people began collecting the best of the worst. One particular entry showed a couple that had both quit their jobs to trade stocks. Their strategy: Buy stocks when they’re going up and sell them when they stop going up.
Wow! Why didn’t anyone think of that before?
Despite the sarcasm, I’m not trying to be mean. Really, I’m not.
I actually very much get it. Everyone wants to be rich. And it’s emotionally tempting to believe there’s some hack to get you there quickly.
Very few want to put in the time and effort to amass meaningful wealth. So people go off in search of instant gratification instead.
Unfortunately, that almost always ends badly. Lives have been ruined this way.
Which is why I want to be as clear as possible about steering you in better directions today.
What Wide Moat Research believes
At Wide Moat Research, we’ve proven time and again that there are simple, easy, and effective strategies to amassing wealth that aren’t too good to be true.
We firmly believe that anyone can get wealthy if they have the patience and discipline to live below their means and invest their savings into high-quality, income-producing assets when they’re available at attractive discounts to fair value.
It really is that simple. But that doesn’t mean it’s easy.
There are no shortcuts here. You have to put something real in to get something real back. And it definitely takes longer than a minute to achieve the desired results.
But those results are achievable nonetheless over the long term.
That’s what Wide Moat searches for every day: blue-chip companies that pay reliable dividends and are trading at attractive prices that should appreciate sometime soon. I’m talking about the kind of assets you can buy and peacefully hold to generate the kind of wealth you need to truly enjoy life down the road.
As Brad has said before:
You’re an adult. So I’ll speak to you like an adult.
I won’t promise you stock market riches. It would be incredibly irresponsible of me to do so. And if anyone does promise you that, you should run quickly in the opposite direction.
But here’s what I will say…
I can tell you that Wide Moat’s strategies have changed my life. They’ve helped me attain and maintain my financial dignity. I believe they can do the same for you. In fact, these strategies are already making a difference with subscribers.
Remember, if there was truly a way to get rich quick, we’d all be billionaires. Which we’re not.
Fortunately, that doesn’t mean we can’t all reach financial freedom regardless. The stock market has been turning regular folks into happy retirees for decades – just as long as they’re willing to play by the rules.
If you’re willing to forget the quick tricks and commit to being patient and disciplined, you can see the same worthwhile results.
Regards,
Nick Ward
Analyst, Wide Moat Research
