Author: cindylundberg@verdecm.com

By Carl Szasz, Founder & CEO

 

 

I want to tell you a story. It is not about magic beans or fairy tales, but about two simple portfolios. One sounds safe, the other sounds completely unhinged. Yet when The Motley Fool ran an experiment a couple years ago, half their paying subscribers, people who pride themselves on being sharp investors, chose the safe one. That blew my mind then and it still does today.

 

Here’s what they showed people. Portfolio A had 2 stocks, both rising 70%. Simple math that turns $100 into $170. Smooth sailing, nothing flashy. Portfolio B also had 2 stocks, but one crashed to zero while the other exploded 1,000%. That same $100 loses $50 on one side and grows to $500 on the other. The final result is $500, far better than $170. Every logical metric points to Portfolio B as the winner, yet nearly half the respondents still chose the safe, quiet route.

  

 

If you’re thinking “Carl, people don’t understand math.” That’s not it, they do. The real issue is they don’t like how the numbers feel. That’s the point. For 22 years I’ve watched investors, and myself, fall into the same trap. We care more about the road than the destination. We want every mile marker to sit higher than the last, with no potholes or detours. We want the sausage to look perfect while it is being made, not just taste great at the end.

 

Psychologists call it negativity bias. A 30% drop feels 10x worse than a 30% gain feels good. Humans absolutely hate feeling bad. I’ve sat across desks from clients who literally lost sleep over a single red day. They would ask, “Is NVIDIA done?” Are the geniuses at the top suddenly idiots? Never mind the fact that the same stock, bought 10 years ago for $10,000, is now worth $2.4 million. Like a rocket ship, it wobbles and it stalls sometimes, but it’s still pointed up. Yet the moment it dipped 30% one year or 50% another year, people bailed because the ride felt too wild.

 

Meanwhile, what were they running toward? Bonds. Cash. Commodities. Real estate. Stuff that sounds responsible. To be blunt, bond portfolios are total snoozers. The same $10,000, after 10 years, lands at $12,000. Yawn. Not evil, just sleepy. The stock market is not only risky, it is the only place your money wakes up.

 

Here’s where things get ugly. Advisors, myself included on weaker days, start listening. Those freaked out voices get loud. “Smooth it out,” they demand. Diversify. So what happens? We sell the rocket ship to buy the glider. That’s been referred to as “di-worsification.” Not diversification. You’re not spreading risk, you’re diluting upside because you can’t stand watching the dial twitch. The truth is that the market doesn’t owe you consistency. It rises about 75%¹ of the time. The other 25% is the price of admission. If you are not willing to ride that out, you’re in the wrong vehicle. Park the money in a CD or in an annuity. I know some planners cringe at the “A” word. Think of it like driving slower. It costs you time in reaching your destination, but if the bumps make you queasy, maybe the trade off is worth it.

 

If you are the kind of person who can look at Portfolio B and think, “I get it, one 0 and one 1000%, I would still take that ride,” then congratulations. You understand investing. You understand that growth comes from chaos, not comfort. David Gardner just released a book titled Rule Breaker Investing. I am placing it in my top 3 without hesitation. He tears apart all the fake rules. Sell when it doubles. Spread it everywhere. Bonds for safety. No. Absolutely not.

 

Real diversification means you pick a handful of powerhouse companies, equal bets, all chasing stock like returns. Then you diversify the rest of your portfolio into low cost stock index funds. You do not stuff half your money into sleepy assets just because the noise makes you nervous. You are not protecting yourself from loss. You are protecting yourself from boredom.

 

Here is the thing. 60% of Americans now have money in the markets², an all time high. That means a lot of people are about to experience exponential growth in a real way. It also means a small, very loud group is about to panic. When that happens, they will blame you, blame me, blame the market, blame gravity, blame anything except the fact that they forgot markets move up and down.

 

Here’s what I’ve learned. Pain is contagious. When you have pain you have 3 choices.

1. You can deal with it by taking a hard look in the mirror and owning your actions.
2. You can recycle it by whining to everyone about how unlucky you are.
3. You can transmit it by convincing others that real investing is doomed to fail.

That last one spreads like a virus. “My advisor put me in NVIDIA, see, it is crashing.” Never mind they bought it after a 90% run up. Never mind they never learned that volatility is baked into the recipe. That is the trap.

 

Here is my holiday gift to you. Go get Rule Breaker Investing by David Gardner. Read it then read it again. Think about which portfolio you would pick if no one were watching. If it is the wild one, and you can handle the wobble, then let’s keep it that way. If it is the safe one, that’s fine too. We will find you the glider. Just make sure fear does not become di-worsification for everyone else.

We are going to spend the next year walking clients through all of this, not to scare anyone or to hold their hand, but to show them that growth is not a luxury. It is a necessity. It is math, and math doesn’t care how nervous you felt along the way. This isn’t about following rules. It is about understanding reality. So the question is simple. Are we ready to break a few rules together?

 

¹ Source: https://am.jpmorgan.com/content/dam/jpm-am-aem/global/en/insights/market-insights/guide-to-the-markets/mi-guide-to-the-markets-us.pdf

² Source: https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx#:~:text=Editor’s%20Note:%20This%20article%20was,Economy%20and%20Personal%20Finance%20survey.

The AI Boom: Opportunity or Overheating?

Artificial Intelligence (AI) is the buzzword of the decade. From ChatGPT to self-driving cars to AI-powered investing tools, the technology has captured imaginations and markets. In 2023–2025, AI-related companies saw explosive growth, and investors piled in.

But now, a new question is surfacing: Is this an AI bubble?

At Verde Capital Management, many of our clients hold portfolios with exposure to the technology sector. If you’re not a client, take a look at your own portfolio. Chances are, if you’re in any ETF, you’re exposed to technology and AI as well. So, let’s unpack what’s really happening and what you can do to stay positioned for opportunity without stepping into unnecessary risk.

 

What’s an “AI Bubble,” Exactly?

A bubble happens when excitement drives prices up faster than the fundamentals can support.

In the case of AI, that might look like:

• Sky-high stock prices for companies that aren’t yet profitable.
• Massive investments in data centers, chips, and infrastructure that may take years to pay off.
• Big promises of productivity gains that haven’t yet shown up in real-world results.

That doesn’t mean AI is a fad. Far from it. It simply means the market might be pricing in future potential that’s still years away.

 

Why AI Still Matters Long-Term

The good news is, even if valuations cool, the underlying technology is transformative.

AI isn’t a single company or product. It’s a wave of innovation touching every industry. From financial analysis to healthcare to logistics, AI is streamlining operations and unlocking new efficiencies.

The last time we saw something this revolutionary was the rise of the internet. Yes, there was a dot-com crash then, but two decades later, the companies that delivered real value (Amazon, Google, Apple) reshaped the world.

History suggests the same will be true for AI. A few long-term winners will emerge stronger than ever.

 

How a Tech-Heavy Portfolio Can Navigate the AI Boom

If your portfolio leans heavily toward technology, here’s how to stay smart:

1. Diversify within Tech

Not all tech is created equal. Balance AI-related holdings with established companies that have strong earnings, cash flow, and competitive advantages.

2. Watch Valuations

A great company can still be a bad investment if you pay too much. Our role as advisors is to identify when enthusiasm turns into excess.

3. Think in Decades, Not Headlines

AI will evolve over years, not quarters. Staying invested through volatility can often outperform jumping in and out based on media sentiment.

4. Don’t Let Fear or FOMO Drive Decisions

Both panic and over-excitement lead to poor outcomes. A disciplined, data-driven investment plan helps you benefit from innovation without betting the farm on it.

 

Are We in a Bubble? Maybe. Should You Panic? No.

The “AI bubble” debate isn’t black and white. Some valuations are stretched. Some companies are genuinely revolutionizing entire industries. Both statements can be true.

For investors, this is a moment for measured optimism. Not fear, not frenzy.

At Verde, we stay curious but cautious, forward-thinking but grounded. Our approach focuses on building resilient portfolios that can adapt to innovation and withstand volatility.

 

What’s Next for AI and Investors

Even if the AI sector cools off in the short term, the long-term impact could be enormous. A potential correction could actually create better entry points for disciplined investors who keep cash ready and strategy steady.

The bottom line is the AI era is here. But as with any major innovation, success depends on staying informed, diversified, and aligned with a clear financial plan.

 

Talk to a Financial Advisor Who Understands Innovation

If you want to review how much tech exposure is right for you or explore whether your portfolio is positioned to capture opportunity without unnecessary risk, our team at Verde Capital Management can help.

Schedule a complimentary consultation.

For many Americans, their 401(k) is their single largest asset, often bigger than their home equity, taxable investment accounts, or emergency savings. Yet, ironically, it’s also the account most commonly left on autopilot.

 

You might check your balance occasionally, maybe even increase contributions once in a while. But when it comes to actual investment management like rebalancing, risk alignment, and integration with your broader financial picture, most 401(k)s are flying without a pilot and that’s a problem.

 

The Retirement Readiness Powerhouse You Can’t Afford to Ignore

A well-managed 401(k) can mean the difference between retiring confidently or scrambling to make your savings last. Why? Because your workplace retirement plan likely represents the core of your future income stream. Even modest improvements in investment allocation, fee optimization, and risk management can translate into significant gains over time.

 

Yet, here’s the catch: most financial advisors don’t manage 401(k)s not because they can’t, but because they don’t get paid to. If your account isn’t held at their preferred custodian, they typically leave it out of the plan entirely. That means your largest account isn’t being coordinated with the rest of your portfolio.

 

Managing 401(k)s Where They Are, Not Where We Wish They Were

Unlike many firms, Verde doesn’t need to move your 401(k) to manage it. We manage it directly at its current custodian, integrating it seamlessly into your overall financial strategy.

 

We do this through our partnership with Pontera, a financial technology company that allows fiduciary advisers like us to manage 401(k)s securely without ever seeing or holding your login credentials.

 

Pontera gives us the ability to rebalance, adjust allocations, and ensure your workplace retirement account works in tandem with your other investments. That means your entire portfolio, not just your IRA or taxable accounts, reflects your goals, your risk tolerance, and your retirement timeline.

 

This Isn’t Just Our Opinion, It’s National News

A recent article from The New York Times* highlighted the growing tug-of-war between fintech companies like Pontera and major 401(k) custodians who have historically limited outside adviser access. The piece quoted Verde’s Founder and Chief Visionary Officer, Carl Szasz, who called Pontera a “game changer” because it allows fiduciaries to fully manage clients’ retirement plans in their best interest.

 

Why is this so important? Because it ensures your retirement plan isn’t managed in a silo or worse, left unmanaged altogether.

 

What This Means for You

• Holistic Retirement Planning: Your 401(k) isn’t an island. It should be part of your broader investment and tax strategy. 
• Professional Oversight: We make sure your largest asset isn’t collecting dust while your other investments get all the attention. 
• No Custodial Transfers Required: We meet your 401(k) where it is. No rollovers, no unnecessary changes, no hidden agenda. 
• True Fiduciary Care: As fiduciaries, our legal obligation is to act in your best interest, not ours. 

 

Retirement readiness isn’t just about contributing more. It’s about making your existing savings work smarter. If your 401(k) is your biggest financial asset, shouldn’t it get the same level of professional care as the rest of your portfolio?

 

Schedule a call with our team to learn how we can integrate and manage your 401(k) as part of your full wealth strategy.

 

*Source: https://www.nytimes.com/2025/10/10/your-money/401-k-fintech-advisers-fidelity.html

 

Why Verde Clients Are Still in a Strong Position Despite the Drop to 3.75% on High-Yield Savings

If you’ve been Googling “What does the Fed rate cut mean for savings accounts?” or “Will my interest rate go down after the Federal Reserve decision?” you’re not alone.

On the heels of the Federal Reserve’s most recent 0.25% interest rate cut, questions are swirling:

• Are high-yield savings accounts still worth it?
• Will my returns shrink?
• Is now a good time to borrow?

At Verde Capital Management, we’ve already run the numbers and here’s exactly how this latest rate cut affects our clients, their savings, and their ability to make savvy financial moves in 2025.

Verde Flourish Drops to 3.75%, Still Crushing Big Banks

Let’s address the elephant in the portfolio: Yes, the Fed cut rates. And yes, our Verde Flourish savings account has adjusted accordingly:

• New rate: 3.75% APY (previously 4.00%)
• Still competitive: Most traditional banks are offering 0.01%–0.50% (that’s not a typo)

If you’re serious about parking cash wisely, a 3.75% yield is still one of the most strategic cash moves available. And it’s FDIC-insured via our partner platform, so you get both yield and security.

Smart Borrowing Just Got Smarter: 5.00% SBLOC

Here’s the upside of falling rates: borrowing just got cheaper, too.

Our Securities-Backed Line of Credit (SBLOC) now offers:

• 5.00% interest (down from 5.25%)
• No need to liquidate investments
• Flexibility for big expenses without tax consequences

A securities backed loan could help you plan a strategic real estate move, tuition payments, taxes payments, or simply give you liquidity without a paper trail of selling assets.

Curious if it’s right for you? Reach out to a Verde advisor and we’ll run the numbers together.

Verde Strategy in a Post-Rate-Cut World: Steady, Smart, Strategic

Let’s be clear: The Fed’s decision affects rates but it doesn’t change your long-term goals. At Verde, our approach hasn’t wavered:

• Cash earns while it waits (thanks toFlourish)
• Liquidity is available (thanks to the SBLOC strategy)
• Your investments are diversified and tax-aware
• Your plan is built to weather markets, not follow them

Frequently Asked Questions We’re Hearing from Clients

Will savings rates drop more?

It’s possible. The Fed is signaling a cautious path forward. That’s why locking in higher-yield options now is smart.

Should I move my savings from my big bank?

If your bank is paying less than 1% and you’re not planning to spend the cash immediately, then yes. Contact us about Flourish.

Should I borrow now before rates rise again?

Maybe. If you have an opportunity or need coming up, now could be the time to take action while borrowing costs are down.

What Should You Do Next?

If you’re wondering how this rate cut affects your financial plan, contact us for guidance.

Schedule a call with our team to talk through your cash strategy, investment portfolio, or potential borrowing needs. bit.ly/callwithverde

Already a client? Log into your Verde client portal or message your advisor to review your current allocations.

The markets have been on a tear this year. We’ve seen strong gains, record highs, and more optimism than we’ve had in quite some time. But as the calendar flips to September, it’s natural to get a little twitchy. Historically, September is the worst month for stocks1, and with headlines hinting at everything from inflation to interest rate decisions, the question on many investors’ minds is: Should I do something?

 

The short answer? Probably not what you think.

 

Let’s take a look at why seasoned investors don’t fear volatility, but they often plan for it, expect it, and even welcome it.

 

Strong Years Still Have Speed Bumps

Even in up years, volatility is normal and so are temporary setbacks. The market can’t go up in a straight line (even if we wish it would), and September tends to remind us of that.

 

But here’s the twist, years with lots of volatility (10+ big market swings) still saw average returns over 19%. In other words, big moves don’t mean bad years. In fact, they often mean the opposite.

 

September Slumps Can Be Smart Entry Points

No one enjoys seeing red in their portfolio. But history shows that buying during a 10% dip leads to median 12-month returns of 15.9%, and buying from the actual bottom of that dip boosts it to 24.5%.

 

So instead of treating September’s potential shakiness as a reason to retreat, think of it as the market’s version of a seasonal sale. It’s the time of year when fear goes on clearance, and long-term thinkers go shopping.

 

Bearish Sentiment = Bullish Potential

Investor sentiment has been incredibly bearish during some of the best buying opportunities in recent history. In the top 10 most bearish sentiment periods, the average return over the next year was 25.1%.

 

Translation? When everyone else is scared, the disciplined investor often reaps the rewards.

 

The Real Risk Is Missing Out

If you think you can avoid September’s swoons and just jump back in for the good days, think again. Missing just the top 5 trading days over the last 20 years would have cut a portfolio’s returns by more than a third (from $717K to $452K on a $100K investment).

 

It’s not about timing the market. It’s about time in the market.

 

What Should You Do This Month?

 

• Don’t panic. The market might wobble, it usually does this time of year. 
• Stay invested. History shows that staying the course beats trying to time the dips. 
• Review your strategy. If volatility makes you lose sleep, it’s a sign to revisit your risk tolerance and diversification. 
• Think long-term. This year has rewarded patient investors. Don’t let one month derail your momentum. 

 

It’s tempting to react when things get bumpy, especially after a great run. But history is clear: volatility is not the enemy. It’s often the doorway to long-term wealth.

 

If you need a partner to help you navigate the emotional roller coaster and keep your investments aligned with your goals, reach out to a Verde advisor. bit.ly/callwithverde

 

Sources

1https://www.morningstar.com/news/marketwatch/2025090155/september-is-historically-the-worst-month-of-the-year-for-stocks-why-this-time-could-be-different

https://www.blackrock.com/us/financial-professionals/literature/presentation/student-of-the-market-special-edition-market-volatility.pdf

Jordan Peterson’s work has been about navigating between chaos and order. His first book, 12 Rules for Life, focused on bringing structure to life, and Beyond Order: 12 More Rules for Life is a guide for what comes next. This book is about embracing chaos to grow, and a reminder that a little bit of unknown is a good thing.

I wanted to dive into three rules from the book that resonated with me, because I think they’re crucial for anyone trying to build a better life, whether that’s just with your money or with your personal habits.

Rule 2: Imagine Who You Could Be, and Then Aim Single-Mindedly at That

This is a call to action. I find it easy to get swallowed up by errands, work, social media, and then a month has passed, but I’m not really moving anywhere. But Peterson argues that a clear vision of our ideal self is the most important thing we can have. We need a destination to navigate by, or we’ll just drift.

This is not setting an impossible plan we have to follow to a T. Once we have a clear picture of who we want to be, whether that’s more financially responsible, a better partner, or a more courageous person, we can start making deliberate choices to get there. It’s an adventure that gives our life direction.

Rule 4: Notice That Opportunity Lurks Where Responsibility Has Been Abdicated

This is the most practical rule in the book. Opportunity doesn’t just fall into our laps, but by looking for problems that others are avoiding. Most want the easy way out, which means there’s a lot of useful work that goes undone.

Peterson says: Don’t Wait! By voluntarily taking on the tasks and challenges others are neglecting, we make ourselves invaluable. This applies everywhere, from our job to our relationships. We not only grow as a person, but also find authentic meaning that we could never get from an easy existence.

Rule 10: Be Grateful in Spite of Your Suffering

This rule is the most challenging and important of all. It’s easy to feel like a victim when things aren’t going our way. Peterson says that even in our darkest moments, there is something to be grateful for. 

Rather than pretending everything is fine, we can acknowledge the pain and still be able to see the small things that remain, even if it is just the fact that I woke up today. This practice doesn’t take away the suffering, but it builds the mental strength we need to get through it.

These rules remind me that a life worth living isn’t something you just get, but something you actively build. It takes a vision, courage to take on responsibility, and humility to be grateful for what you have.

If you spend even five minutes on social media platforms like Instagram or TikTok, chances are you’ll run into someone sharing “life-changing” money advice. These self-proclaimed financial influencers, or “finfluencers,” often speak with confidence, charisma, and a convincing air of authority. But here’s the hard truth: a ring light and a viral post don’t make someone a credible financial expert. 

At Verde Capital Management, we spend our days helping clients make smart, informed decisions about their money. We’ve seen firsthand how misleading advice can derail financial goals. So before you take advice from your favorite finfluencer, it’s crucial to approach their content with caution.

Not All Financial Advice is Created Equal

When it comes to managing your finances, one-size-fits-all solutions simply don’t work. Each person’s financial situation is unique. What works for one person might be disastrous for another. Yet, many finfluencers share overly simplified advice that could be more harmful than helpful. For example, advice like “just invest in XYZ stock” or “cut out all unnecessary spending and you’ll get rich” doesn’t account for the complexity of personal financial goals, risk tolerance, or long-term planning.

Check the Credentials and Qualifications

One of the most concerning aspects of the rise of finfluencers is that many of them have no formal financial qualifications. In fact, some lack any relevant credentials whatsoever. While their advice might sound reasonable, it’s essential to ask: Are they qualified to give this advice?

Financial advice should come from experts with appropriate training, certifications, and experience. Look for financial advisors who are Certified Financial Planners (CFPs) or who have other legitimate industry credentials. These professionals have spent years studying financial principles and adhering to industry standards to ensure that their guidance is responsible, reliable, and in your best interest.

One of the easiest ways to verify someone’s credentials is to see if they are a licensed advisor. Look them up on brokercheck.finra.org or adviserinfo.sec.gov to review their work history, licenses, and, most importantly, any disclosures such as customer complaints, arbitrations, regulatory actions, job terminations, bankruptcies, or civil and criminal proceedings.

Examples of Dangerous Advice

Unfortunately, there’s no shortage of bad advice being passed off as wisdom from finfluencers. Here are some examples of what you should watch out for:

• “Buy this stock now and get rich.” The idea that you can make quick money by purchasing specific stocks is appealing, but it often overlooks the importance of diversification, risk management, and long-term strategy. Betting everything on one stock can lead to significant financial losses.
• “Cut out all your ‘non-essential’ expenses.” While it’s true that cutting down on unnecessary spending can help free up money for savings, taking this advice to extremes can lead to burnout. Neglecting your personal well-being in an attempt to save money is not sustainable. Financial advice should balance saving and investing with maintaining a healthy lifestyle and well-being.
• “Make your child a millionaire by opening a Roth IRA for them.” Some finfluencers are promoting the idea of opening a Roth IRA for your child in an attempt to set them up for a financially secure future. While the idea of early retirement is tempting, this advice is flawed. Roth IRAs require earned income to contribute, and infants or children typically have no earned income. Without that, it’s impossible to contribute to a Roth IRA, making this advice not only impractical but you also run the risk of failing an IRS audit which could be costly. Instead of chasing unrealistic strategies, consider starting a custodial account or teaching children financial literacy to set them up for success when they’re old enough to earn an income.
• “Cryptocurrency is the future—buy now before it’s too late!” Cryptocurrencies can be a part of a diversified portfolio, but they come with extreme volatility and risk. The hype surrounding them can often overshadow the risks involved. Without a thorough understanding of how crypto works and how it fits into your financial plan, jumping into it blindly can lead to poor decisions.
• “You can easily retire in your 30s if you just live frugally.” While the idea of Financial Independence, Retire Early (FIRE) has gained popularity, it’s not a one-size-fits-all approach. For some, the extreme frugality required for FIRE might not be realistic, and without a strong financial foundation, it can lead to burnout or regret later on.

The Danger of Self-Taught “Experts”

Many finfluencers rise to fame based on their personal success stories. However, personal success does not automatically translate to universal expertise. Just because someone made money in the stock market or successfully navigated their own finances doesn’t mean they know how to help others do the same. Finance is complicated and requires a deep understanding of various elements, such as tax laws, investment strategies, estate planning, and risk management. They may have gotten lucky once or twice, but that typically doesn’t translate to a lifetime of professional advice.

The Problem of Conflicts of Interest

Another issue to be wary of is when finfluencers promote products or services they’re being paid to endorse. Some influencers receive commissions or perks for promoting financial products like credit cards, investment platforms, or stock recommendations. This introduces a conflict of interest, as their advice may be driven by personal gain rather than what’s truly best for you. It’s essential to understand their motivations before acting on their recommendations.

How to Spot a Red Flag

• They promise guaranteed returns or “can’t lose” strategies.
• They rely on emotional hype instead of real numbers.
• They dismiss professional advice as unnecessary.
• They offer one-size-fits-all solutions.

What Should You Do Instead?

Before acting on any financial advice, always check the source. Ask yourself:

• Do they have formal qualifications in finance?
• Are they providing advice that considers your unique situation?
• Are they transparent about any conflicts of interest?
• Is their advice too good to be true?

Social media can be a great place to discover new ideas, but it’s not where you should get your financial blueprint. Before acting on advice, verify the source, cross-check with reputable resources, and if possible, run it by a qualified advisor who understands your entire financial picture.

Your money deserves more than just trending tips. It deserves strategies built for your goals, your timeline, and your peace of mind. If you’re unsure where to start, reach out to a Verde advisor. While you’re at it, give us a follow on our socials: Facebook, Instagram, LinkedIn, and YouTube!

 

By Connor, Dylan, and Eva, Class of 2025 Summer Interns

In wealth management, we’ve always believed the most important innovations are those that
unlock access—better tools, broader opportunities, and ultimately, stronger financial outcomes.
Today, familiar platforms like Robinhood are pioneering just such a shift by enabling tokenized
ownership of private market equities.

While “tokenization” is most commonly associated with cryptocurrency, it actually refers to a
larger movement. This is a fundamental shift that could forever change how investors, both
accredited and retail, engage with private markets. And to appreciate where we’re going, it
helps to understand where we’ve been.

 

A Brief History: Public vs. Private Markets

Public markets have long been the backbone of individual investing. Since the Buttonwood
Agreement in 1792, where 24 brokers created the foundation for what became the New York
Stock Exchange. Public equities have offered transparency, regulation, and liquidity. This
framework allowed companies to raise capital from the general public, and in turn, offered
investors an accessible path to ownership in the American growth story.

But access came with trade-offs. Going public is expensive, time-consuming, and exposes
companies to intense regulatory scrutiny and short-term market pressure. In the 1980s and
’90s, being a public company was the gold standard. But over the last two decades, a shift
occurred: companies started staying private longer.

Here’s why that matters:

● In 1980, the average age of a company going public was 6 years. Today, it’s 12+ years.
● The number of publicly listed U.S. companies has fallen by nearly half since 1996.
● Much of the value creation now occurs while companies are still private, think Stripe,
SpaceX, Databricks, and OpenAI.

Private markets have historically been out of reach for the average investor. Minimums are high,
liquidity is low, and regulations have limited participation to institutions or accredited individuals.
This has contributed to growing inequality in who benefits from early-stage, high-growth
investments.

 

Enter Tokenization

Tokenization flips this model on its head.

At its core, tokenization is the process of digitally representing ownership of an asset on a
blockchain. In the context of private market equities, that means turning shares of a private
company into digital tokens that can be bought, sold, or traded—often in fractional amounts.

Here’s why this matters:

● Accessibility: You no longer need millions to invest in a private company. Tokenization
enables smaller transaction sizes and fractional ownership.
● Liquidity: Traditionally, private investments were locked up for years. Tokenized assets
can be traded on regulated secondary markets, improving exit options.
● Transparency and Efficiency: Blockchain technology enhances record-keeping,
reduces settlement times, and lowers administrative costs—benefiting both investors
and issuers.

 

Why Now?

The technology behind tokenization has been around for a while, but a few things have recently
aligned:

● Regulatory clarity is improving, with the SEC and FINRA outlining rules for digital
asset securities.
● Platforms like Securitize, tZERO, and INX have launched compliant marketplaces for
tokenized private equities.
● Retail Demand is surging. Investors want exposure to more than just stocks and bonds.

Perhaps most importantly, major players like Robinhood are moving in. Robinhood recently
signaled its intent to bring alternative assets, including tokenized securities, onto its platform.
The implications are massive: millions of retail investors could soon access pre-IPO equity in
companies they know and love.

 

The New Frontier of Investing

We’re entering a world where private markets start to look and feel more like public ones,
without forcing companies to sacrifice control or transparency. This is powerful.

To illustrate: Imagine buying a $500 stake in a tokenized share of a growth-stage startup. If that
company is later acquired or goes public, you participate in the upside—just like a VC. Better
yet, if you need liquidity before then, you may be able to sell your tokenized shares on a
compliant secondary market.

For investors, tokenization does two important things:

1. Levels the playing field—allowing more people to benefit from early-stage innovation.
2. Unlocks a historically illiquid asset class, enabling portfolio diversification with
potentially higher returns.

Of course, risks remain. Valuations can be murky, exit timelines are uncertain, and the
regulatory environment is still evolving. But make no mistake: the direction of travel is clear.

And this is an area where professional guidance matters.

At Verde Capital Management, we believe tokenization isn’t just another trend, it’s a
groundbreaking shift in how capital markets function, promising efficiency and opportunity.

If you’re serious about building long-term wealth, it’s time to start understanding how private
markets, and the technology transforming them, can fit into your strategy.

We’re here to help you navigate this change, ask the right questions, and start early. In this new
financial era, fractional access could mean full potential.

While we’re not offering tokenized private equity solutions to clients just yet, we are actively
exploring what’s next. At Verde, we’re committed to staying at the forefront of opportunistic,
forward-thinking strategies, and there’s more to come.

 

— Connor, Dylan, and Eva, Class of 2025 Summer Interns

 

Sources:
Harvard Business Review – It’s Time to Replace the Public Corporation (2021)

Tokenized Funds: The Third Revolution in Asset Management Decoded (2024)

How Tokenization is Transforming Global Finance and Investment (2024)

What are Real World Assets?

National Bureau of Economic Research, PitchBook, NVCA, RobinHood press releases

For this month’s Marc’s Book Club, I dove into a timeless classic that continues to resonate with readers today: The Richest Man in Babylon by George S. Clason. This book is made up of parables set in ancient Babylon, and offers key principles for acquiring wealth, keeping it, and making it grow. Despite being written nearly a century ago, and taking place in a timeframe over a thousand years ago, its lessons on personal finance are as relevant today as they were then. It emphasizes simple and actionable steps that can be applied by anyone.

One of the most powerful lessons from The Richest Man in Babylon is the principle, “Start thy purse to fattening,” which advises saving a portion of all you earn. This simple act of consistent saving is presented as the cornerstone of wealth accumulation. It teaches us to pay ourselves first, to build a proper financial foundation.

Beyond just mere saving, the book illustrates that “opportunity is a haughty goddess who wastes no time with those who are unprepared.” This concept highlights that what often appears to be “luck,” is in fact the result of preparation meeting opportunity. By continuously learning, developing skills, and having a bias towards action, we can position ourselves to seize valuable opportunities when they arise, turning potential into prosperity. 

Finally, The Richest Man in Babylon touches on the importance of planning for the future, particularly in protecting one’s accumulated wealth and providing for one’s family. In modern terms, this translates to the critical role of estate planning. Clason writes, “He must make a will of record that, in case God call him, proper and honourable division of his property be accomplished.” Estate planning through a will and trust ensures your assets are managed and distributed according to your wishes and provides security for your loved ones. This safeguards the wealth you’ve worked so hard to build for generations to come.

The Richest Man in Babylon is a simple read for anyone seeking practical advice on financial wealth building. It serves as a powerful reminder that the path to wealth is built on consistent discipline, thoughtful spending, smart investments, preparedness for opportunity, and diligent planning for the future.