Personal finance expert Dave Ramsey has long dismissed crypto, gold and single-stock investing, calling them risky distractions -- but new research shows that his disciplined mutual fund approach may have cost him market-beating returns.
Ramsey's Simple Three-Investment Rule
In a 2024 video, Ramsey said, "I have three investments -- that's all I have: my business, paid-for real estate and mutual funds. I don't play single stocks. I don't screw around with gold. I don't mess with Bitcoin."
He's been consistent about avoiding speculation, often mocking self-proclaimed investing gurus. "I don't need your stock tip from your broke golfing buddy," he said in the same clip. "I'll set my net worth down beside yours while you mouth off."
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The Numbers Tell A Different Story
In June 2025, Brian Preston and Bo Hanson, hosts of The Money Guy Show on YouTube, tested Ramsey's long-term returns against popular investing strategies.
Using funds that mirror his preferences -- including the Columbia Large Cap Index Fund (NASDAQ:NEIAX), JPMorgan Mid Cap Growth Fund (NASDAQ:JMGPX), American Funds EuroPacific (NASDAQ:REREX) and Franklin Small Cap Growth Fund (NASDAQ:FSGRX) -- they built a "Ramsey portfolio."
They then compared its performance with the Vanguard S&P 500 ETF (NYSE:VOO) and a balanced three-fund portfolio combining U.S. stocks, international equities and bonds.
Here's what they found:
| Time Period | Ramsey Portfolio | S&P 500 (VOO) | Three-Fund Portfolio |
|---|---|---|---|
| 10 years | ~8% | ~12% | ~9% |
| 5 years | ~10% | ~15% | ~12% |
Preston said Ramsey's growth-heavy allocation would have "crushed" it in 2005 to 2007, when emerging markets boomed, but the U.S. large-cap dominance since then has made a simple index fund unbeatable.
Crypto, Gold And The ';Cocaine' Comparison
Ramsey has never softened his stance on speculative assets. During the 2021 crypto bull run, when Bitcoin (CRYPTO: BTC) soared more than 100% year-to-date, he compared digital assets to gambling.
People make "a lot of money on cocaine too," he said, adding that doesn't make it smart.
He advised listeners to stay away from crypto if they "don't want to start over" and instead stick to long-term mutual funds.
Bitcoin is currently valued at $124,648, showing a 0.58% increase in the past 24 hours.
Real Estate's Not Passive: Ramsey
In a 2024 conversation with comedian Theo Von, Ramsey also dismissed the idea of effortless real estate income. "There's nothing passive about it," he said. "You're either in the middle of it, or you're getting screwed."
Benzinga's Edge Stock Rankings place VOO's momentum in the 67th percentile, with performance across other metrics detailed below.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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