Investments: 5 false myths to dispel

Investments: 5 False Myths

It’s a common misconception that you must constantly follow the markets to invest. Discover the five most prevalent myths about investing.

What are the common myths about active market investors? Many misconceptions exist, much like the popular beliefs that wholemeal bread has fewer calories than regular bread, that eating carbohydrates in the evening causes weight gain, and that dogs perceive the world in black and white. These false myths permeate our daily lives until we accidentally uncover the truth, often by reading a revealing article like this one. When it comes to finances, these myths can resemble urban legends. So, what are some of the most prevalent misconceptions in the world of investments?

In this article, we will examine various myths, including the unrealistic time horizons that young investors often believe they have, as well as the paradox of the over-informed investor who ultimately harms themselves.

The CAP is the best way to invest.

What? We started with a cannonball, huh? Is this a myth? Hold on, don’t run away; I’ll explain. The CAP, or Capital Accumulation Plan, is undoubtedly a great way to build wealth, especially if you don’t have large sums of money available or if the idea of investing everything at once makes you anxious. 

Regularly setting aside a small amount of money not only reduces the risk of entering the market at the wrong time, but it also helps you develop self-discipline—much like a Tibetan monk—especially when you use automatic deposits. Plus, let’s be honest: it lessens the emotional toll of experiencing the market’s ups and downs.

However, there is always a caveat: this approach is not the most mathematically efficient way to invest. Statistically, putting all your capital into a single, bold solution (PIC) offers higher returns. Why is that? It’s simple: all your capital works for you immediately, allowing you to fully benefit from the power of compound interest from day one. Additionally, since markets tend to rise over the long term, the likelihood of buying an asset at a lower price today is generally higher than it will be tomorrow or the day after.

The effectiveness of a Premium Allocation Contract (PAC) in managing purchase prices during bearish market phases is somewhat limited, particularly if the portfolio is still in its growth phase. Initially, payments into a PAC are more likely to influence the average price positively, but this effectiveness tends to decrease as the portfolio matures.

That said, I want to emphasise that a PAC remains a strong investment option while also providing a savings mechanism. For many investors—likely the majority—it is the best solution available. Although it may not be the most efficient option in absolute terms, the peace of mind it offers can often outweigh the benefits of marginal gains.

More risk means more return.

This may sound controversial, almost like a challenge to the popular saying “no pain, no gain.” How can the concept of balancing risk and return be deemed a myth?

To clarify this, we need to explore the physical and statistical idea of ergodicity. In simple terms, a system is considered ergodic if, over the long run, the time average of a single path equals the average across all possible paths. If this sounds confusing, you’re not alone.

Let’s use a more relatable example. Imagine your favourite motorcyclist, who is exceptionally talented and often finishes on the podium. However, he rides recklessly—he brakes at the last moment and performs wheelies in corners, which leads to frequent crashes and injuries. For simplicity, let’s say he has a 20% chance of winning each race but also faces a 20% chance of getting seriously injured and missing the rest of the championship. What are his chances of winning in a 10-race championship?

Intuition might suggest that with a 20% chance of winning each race, our hero could expect to win about 2 out of 10 races. This seems logical. However, the situation is more complicated than it appears. The high risk of injury is a significant factor to consider. Supposef our daring competitor suffers a serious injury—there’s a 20% chance of this in every race—his dreams of glory could come to a swift end. An injury would prevent him from participating in the rest of the championship, effectively eliminating his chances of overall victory. He could win two races and then spend the remainder of the season watching from the sidelines, perhaps with a leg in a cast.

Non-ergodicity is a crucial concept to understand in this context. It emphasises that a person’s skill is closely linked to their willingness to take risks, which can sometimes lead to “ruin”—especially in sports. Similarly, in investments, taking high risks, even with the potential for significant returns, can result in the investor’s downfall and render historical averages irrelevant. In non-ergodic situations, the focus shifts from maximising yields to ensuring survival. To reduce these serious risks, diversification is essential; it helps lower the chances of facing losses from which one might never recover.

To invest, one must be informed

It may surprise you, but sometimes an investor who is blissfully unaware of market happenings—meaning they choose to ignore the noise—can be more effective. Yes, you read that correctly. This is because those overwhelmed with information, charts, opinions, and alarmist tweets are more likely to make impulsive decisions.

Additionally, investors who see themselves as the next Warren Buffett—always well-informed and on top of everything—might be tempted to experiment. They may use complex financial instruments that seem straight out of a science fiction movie, buy ‘exotic’ assets, or develop strategies so intricate they would challenge a NASA engineer. The outcome? Often, they take on more risk and lose control. Sometimes, the overly informed investor ends up like a cook who ruins an otherwise good dish by adding too many ‘special’ spices.

Young people have a long-term horizon.

More than just a common misconception, we are facing a logical fallacy—a classic error in perspective. Many people believe that young individuals have decades ahead of them to invest: twenty years, twenty-five, thirty… it feels like an eternity! This mindset stems from thinking of ourselves as if we are playing a video game, to maximise our final score, which in this case means accumulating capital for retirement.

However, the reality is quite different. Suppose you are young and take a moment to reflect. In that case, you may realise that the money you plan to invest might be needed long before you reach your golden years—if those years even include a pension, given the uncertainties around social security. You may need that money for a down payment on a house, a wedding, an expensive master’s degree, or that dream trip you’ve always wanted. In short, sooner or later, you will enjoy—or need—to use that money.

Investing exclusively in equities simply because “there’s still time” is similar to preparing for a marathon by consuming only sweets. It’s essential to include a mix of assets with varying risk and return profiles in addition to stocks, as these may take time to generate positive results. For example, consider incorporating bonds or bond ETFs, as well as cryptocurrencies or commodities, to diversify your investment portfolio.

The global ETF is the holy grail that faithfully replicates the world economy

We arrive at a fundamental principle for forum investors known as ‘VWCE & Chill’ (or its global equivalent). This philosophy resembles a way of life, almost akin to a religion, complete with excommunications for those who dare to stray from the established path of the global index. Many investors adopt this nearly blind faith approach, overlooking the true nature of their investment choices.

It’s crucial to understand that the stock market does not comprehensively represent the entire world economy. Instead, it only reflects a large subset of companies that choose—and are able—to go public. In the United States, financial culture and demand for the stock market are so ingrained that a significant number of large companies are publicly listed. In contrast, many successful companies in Europe and other parts of the world opt to remain private, choosing alternative forms of financing. Consequently, a global equity ETF, no matter how diversified, may overlook essential segments of the real economy.

How can we exclude the crypto world from this discussion? Bitcoin, in particular, has become a focal point in recent years due to its relatively predictable growth, which results from the cyclical nature of its price movements. It has created fortunes for many investors and has become one of the most popular assets globally, thanks in part to exchange-traded funds (ETFs) issued by major American investment firms. Often referred to as “digital gold,” Bitcoin serves as a crucial haven asset in today’s financial landscape.

Bitcoin’s mathematically finite supply and decentralised nature position it as a safeguard against unregulated monetary policies and missteps by central banks. In the context of soaring U.S. government debt and ongoing turmoil that erodes confidence in traditional currencies, Bitcoin is not merely an alternative; it is a resilient solution and a strategic store of value. Thus, it becomes an essential component of conscious asset diversification, helping to protect against the evident and increasing vulnerabilities of the traditional financial system.Bitcoin’s volatility is undeniable, but it is also a hallmark of a revolutionary asset class that is still working towards global acceptance. Ignoring Bitcoin in today’s financial climate would be akin to repeating the mistake of those who underestimated the internet’s potential in its early days.

Supply chain and open finance: the integration that could revolutionise the supply chain concept

Supply chain and open finance: revolution?

The integration of open finance could transform the supply chain by making financial flows more efficient and transparent. How can this be achieved?

The supply chain is prepared to collaborate with open finance, creating a synergy that promises significant advancements. Thanks to APIs, stakeholders at various stages of the supply chain can greatly enhance financial flows. In this article, we will explore how this can be achieved. Let’s get started!

Supply chain: meaning and how it works

The supply chain refers to all the elements involved in the journey from product creation to delivery to the end consumer. The term “chain” is intentional, as it conveys the idea of a series of interconnected stages where each link depends on the proper functioning of the previous and subsequent ones.

While the supply chain manages the physical flow of goods and services, supply chain finance (SCF) oversees the financial flow. SCF is defined as a collection of solutions aimed at optimising financial transactions between supplier and buyer companies within the supply chain. It includes various strategies designed to enhance collaboration and trust between these parties, providing mutual benefits to both producers and buyers.

This collaborative approach is essential because the supply chain is exposed to various risks. Common issues include situations where the buyer pays, but the supplier fails to ship, or where the supplier ships, but the buyer does not make payment. Such problems can significantly disrupt the stability and efficiency of the supply chain, resulting in substantial economic consequences.

Supply chain finance (SCF) includes key features such as reverse factoring and dynamic discounting. Reverse factoring, which can be inaccurately translated into Italian as “reverse invoice advance,” is the primary solution offered by SCF. But what does “reverse” mean in this context? Unlike direct factoring, where a supplier sells their outstanding invoices to a third party for immediate liquidity (often paying a commission to the intermediary), reverse factoring flips the roles. In this scenario, it’s the buyer—a large company—that approaches the third party for the advance, enabling the supplier to access capital under more favourable terms to fulfil their order. Essentially, the purchasing company reassures the supplier, saying, “Don’t worry, I’ve got your back; this way, you can get paid sooner and pay less for the loan.” The purchasing company then repays the advance at a significantly lower interest rate than what the financing company would charge in a direct factoring arrangement. Consequently, the purchasing company benefits from a lower final price.

Dynamic discounting operates on the same principle, with the purchasing company advancing liquidity without any intermediaries. In this case, the supplier issues an invoice with a due date, and the buyer collects it and provides the advance directly. What does the purchasing company gain? They receive an invoice discount, termed “dynamic” because it varies depending on when the payment is made: the sooner the payment is made, the less is paid, and vice versa.

In summary, the solutions offered by SCF aim to enhance capital management and reduce payment times by providing suppliers with early access to liquidity. Additionally, they enable small and medium-sized enterprises (SMEs) to obtain financing on more favourable terms by leveraging the creditworthiness of their buyers, who effectively support them in this process.

Open Finance: what it is and how it works   

Open Finance refers to a system that enables the secure and consensual sharing of customer financial data among various participants to develop innovative products and services. The term “consensual” emphasises​​ the necessity of obtaining permission from the data owner before sharing their information. Open Finance is rooted in the concept of Open Innovation, which views innovation not as a product of competitive secrecy but rather as a result of collaboration, sharing, and transparency

Open Finance is seen as an evolution of Open Banking. While Open Banking primarily focuses on banking data, Open Finance broadens this scope to encompass the entire financial sector. As a result, Open Finance aims to create an interconnected financial ecosystem that encompasses not only banking services but also mortgages, insurance policies, investment portfolios, pension funds, and other financial products.

Open Finance is fundamentally built on the interactions between three key actors: customers, financial institutions, and Third Party Providers (TPPs). TPPs are external companies that exchange, process, and utilise financial data. In essence, customers decide whether to grant TPPs access to their financial data held by various institutions. 

Once permission is granted, APIs (Application Programming Interfaces) serve as the technological backbone of Open Finance, acting as a ‘bridge’ between different IT systems. This enables efficient and secure communication of financial information. As a result, an ecosystem emerges where various entities share knowledge and collaborate to generate innovative solutions, ultimately aiming to enhance the economic structure as a whole.

To grasp the significance of this new paradigm, let’s use an example of organising an Easter Monday gathering. Imagine you want to arrange a traditional lunch with friends. You assign tasks, such as who will handle the barbecuing, who will cook the vegetables, who will bring the drinks, and who will buy the plates and glasses. As the organiser, you receive countless messages: the person in charge of the barbecue asks if the vegetable cook would like to grill, the drinks coordinator is unsure if they should also bring glasses, and the plate buyer wants to know how many courses are planned. It quickly becomes chaotic. You are the organiser, not the switchboard operator.

To streamline communication, you create a WhatsApp group titled ‘Easter Monday 2025.’ This innovation enables all participants to interact directly with one another without going through you. Similarly, Open Finance can be compared to this WhatsApp group, facilitating direct communication among various stakeholders. 

We have previously explored the concepts of supply chains and Open Finance, as well as their operational aspects. Now, it’s time to examine how these two concepts could work together and the benefits this synergy could bring to the infrastructure.

If Supply Chain and Open Finance Integrate

The supply chain is a network of interconnected units that are constantly communicating with one another. However, the main challenge is that this communication often follows a linear and fragmented approach. Integrating Open Finance into the supply chain can make processes more fluid and enhance the overall infrastructure by increasing efficiency and operational efficiency.

So, how does this work? It’s through APIs (Application Programming Interfaces), which enable the continuous exchange of data and the execution of transactions among various participants, such as banking institutions, third-party companies (TPPs), supply chain finance (SCF) intermediaries, and different business management systems (ERPs). 

The result is an ecosystem that enables the secure and rapid transfer of information, where processes are automated and optimised. The more efficient, transparent, and collaborative the communication is, the smoother and more stable the supply chain becomes.

The processes, the higher the productivity and, consequently, the turnover. 

The Open Finance API specifically facilitates access to account information services (AIS) and payment initiation services (PIS). AIS allows for the retrieval of account balances and transaction details, while PIS enables the automatic authorisation of payments under certain conditions. This functionality provides a current and comprehensive view of a company’s financial status, allowing the assessment of its liquidity and spending capacity. Additionally, it streamlines and speeds up transactions within the supply chain. Let’s explore a practical example.

As the owner of GiardiNani S.r.l., a company that manufactures garden figurines, you receive a large order from a purchasing company in the UK. This is the first time you’ve had to produce such a significant quantity of garden figurines, and you lack the funds to begin production. Fortunately, the purchasing company introduces you to reverse factoring, which you find promising.

You issue an invoice with a 60-day due date to the purchasing company, which approves it through its ERP management system. Via an API, the ERP automatically sends the invoice data to a third-party reverse factoring company, which determines whether to provide financing. This financing company can access the financial information (AIS) of both the purchasing company and GiardiNani to assess their financial situations and develop loan terms.

Due to the purchasing company’s high credit rating, it offers a loan with excellent terms, which GiardiNani gladly accepts. After this, the reverse factoring company issues the payment automatically (PIS). With the cash received, your factory can begin producing garden figurines.Finally, the purchasing company is responsible for repaying the loan to the reverse factoring company at the end of the 60 days. Their management systems, connected via an API, communicate seamlessly to facilitate the transaction.

What happened? Almost automatically, GiardiNani gained access to liquidity at much more favourable costs and conditions than it would have obtained through traditional financing. Open Finance enables quicker transactions by providing access to financial data (Account Information Services – AIS) and facilitating automatic payments (Payment Initiation Services – PIS). 

The exchange of information and communication between management systems reduces human error and accelerates the entire process. Transparent data allows for a more accurate, timely, and efficient assessment of credit risk. 

Overall, the supply chain benefits from these improvements because the processes run smoothly, without any lost time. And as we know, time is money.

A consideration for the future 

The integration of supply chain management with Open Finance currently focuses on enhancing system responsiveness and improving process efficiency. The next phase involves implementing artificial intelligence and machine learning to develop systems capable of predicting liquidity crises and insolvency risks. These advancements will enable the dynamic optimisation of services based on market conditions, as well as the creation of risk-balancing models and other benefits.

Given that transparency is a key principle of Open Finance, blockchain technology is likely to play a significant role in this new approach to managing and optimising financial flows. In the cryptocurrency sector, we can already see examples of initiatives aimed at improving supply chain processes, such as VeChain. We are still in the early stages of this development and will continue to closely monitor this trend. 

ESG and sustainability: ethical investment towards an uncertain future?

ESG and sustainability: ethical investment towards an uncertain future?

ESG and sustainability were once fashionable terms in traditional finance. Recently, however, the climate has shifted, leaving the future uncertain. What has happened?

Sustainable ESG (Environmental, Social, and Governance) investment has been a hot topic for several years. A Google search for ‘ESG’ in 2022 yielded over 200 million results. This aligns with a historical period marked by heightened awareness of climate change risks and the implementation of green policies by various institutions. However, recent data suggests that we may be experiencing a shift in this trend. In this article, we will explore what ESG investments are and examine why their popularity might be waning. Enjoy your reading!

ESG: meaning, criteria and ratings

ESG stands for Environmental, Social, and Governance, representing the key pillars used to evaluate a company’s or investment’s sustainability, Corporate Social Responsibility (CSR), and ethical impact. ESG is part of the broader concept of sustainable and responsible investing (SRI). The emergence of ESG can be traced back to a historical moment characterised by a heightened focus on environmental issues. In essence, ESG investing involves selecting and supporting companies that actively protect the environment and uphold human and workers’ rights. This selection is based on specific criteria.

ESG (Environmental, Social, and Governance) criteria are categorised into three main areas and are essential for assessing the sustainability and social responsibility of a company or investment. If you were the manager of a sustainable mega hedge fund tasked with evaluating a company for potential investment, you would begin by examining the environmental criteria. This involves assessing the impact of the company’s activities on the environment and its willingness to mitigate any harm. Key factors in the Environmental section include the use of natural resources, waste management, pollution, and overall environmental compliance.

Next, you would analyse the social criteria, part of the Social pillar, to evaluate the company’s relationships with its stakeholders, which include employees, suppliers, customers, and the local community. The goal of this assessment is to gauge the implications of the company’s operations and its demonstrated accountability toward the various stakeholders mentioned above.

Specifically, you should check employees’ working conditions, respect for human rights, product quality and commitment to local communities.

In conclusion, it’s essential to study the corporate governance model, specifically the governance criteria. This section examines the company’s corporate structure, decision-making processes, and policies to ensure they align with ethical principles and best practices. Key aspects to focus on include transparency, anti-corruption measures, the independence of board members, respect for minority interests, and gender diversity. You can conduct these assessments yourself or delegate the task to specialised agencies that provide ESG ratings.

ESG ratings are evaluations presented as numerical scores or alphabetical scales that aim to assess the overall sustainability of corporations. Their primary function is to provide investors with additional information to aid in their investment decisions. Globally, some of the most well-known ESG rating agencies include MSCI ESG Research, Sustainalytics, S&P Global ESG scores, and Moody’s ESG Solutions. Additionally, there are specialised providers like Standard Ethics, which focuses specifically on compliance with international standards.

However, there is often a significant gap between intentions and actions. Let’s examine some major defects associated with this financial trend, which contribute to the ongoing shift in its momentum.

ESG and contradictions: scandals and greenwashing

Sustainable ESG investing is a commendable effort that merges the pursuit of profit with an awareness of the real impact that economic and financial decisions have on our planet. However, some large companies and investment funds have taken advantage of the growing popularity of this ethical approach to enhance their image in front of investors and consumers, without genuinely fulfilling their promises. Their ultimate goal? To boost their revenues.

An example of corporate misconduct is the Dieselgate scandal of 2015 involving Volkswagen. Investigations revealed that the car manufacturer had been rigging emissions tests for its diesel vehicles to make them appear more environmentally friendly. This was part of an effort to position Volkswagen as a leader in green technology. Ultimately, the class action lawsuit was settled, with Volkswagen agreeing to pay $14.7 billion to affected owners.

Another case is that of Wirecard, a German digital payment services company. This scandal is particularly noteworthy because it also implicated ESG (Environmental, Social, and Governance) rating agencies. Despite receiving average ratings—considered neither outstanding nor poor compared to its competitors—Wirecard declared bankruptcy in June 2020 due to a $1.9 billion hole in its balance sheet. This situation recalls the 2008 financial crisis, when rating agencies incorrectly assigned triple-A ratings to subprime financial products.

On the investment fund side, a report by the European Securities and Markets Authority (ESMA) highlights that simply adopting ESG (Environmental, Social, and Governance) designations can lead to significant increases in investment. On average, there is an 8.9% increase in capital during the first year following the name change, with terms related to the environment—particularly those associated with the Environmental pillar—showing the most pronounced effects. However, the report also identifies a key risk: the potential for greenwashing, a marketing strategy that promotes an image of environmental sustainability while downplaying or concealing its negative impacts. To address this issue, the report provides guidelines for best practices.

One important factor that remains to be examined in understanding the decline in popularity of ESG sustainable investing is the election of Donald Trump.

ESG sustainability and Donald Trump don’t mix: ‘Drill, baby, drill!’

Last November, Donald J. Trump became the President of the United States of America thanks to an election campaign based on American isolationism and the desire to put an end to the ‘woke‘ ideology. This umbrella term also includes climate and environmental issues. At his inauguration speech on 20 January, The Donald immediately made things clear: ‘with my actions today, we will end the Green New Deal‘ – a plan of economic and social reforms focused on climate change and inequality. Suddenly, the scenario has changed, or, to stay on topic, the climate has undergone a change.

Global ESG sustainable funds, according to a Morningstar report, suffered record outflows of $8.6 billion in Q1 2025, compared to $18.1 billion in inflows in the previous quarter. The same report also tells us that investors in the US withdrew money from these funds for the tenth consecutive quarter. At the same time, Europe recorded its first net outflows since 2018, with $1.2 billion withdrawn, compared to $20.4 billion in inflows in Q4 2024. It is also worth noting that, despite this, ESG funds globally manage more than $3 trillion in assets. 

Another interesting statistic, again from Morningstar, concerns the closing and rebranding activity of ESG funds: as of 2024, 94 sustainable funds were closed in Q4, for a total of 351 in the year, while 213 European funds changed their names, according to the guidelines of the ESMA report we saw earlier. Of these, 50 introduced ESG references, 115 removed them, and 48 changed them

Finally, we get a survey from Stanford University that could provide helpful information for understanding the direction of the ESG trend. In 2022, 44% of young investors thought it was essential for investment funds to use their influence on the companies they invest in to prioritise environmental issues. In 2023, 27% thought so, while the latest survey, covering 2024, reveals that only 11% of the sample surveyed held the same opinion. When asked the same question about improving social and governance practices, the drop was even more pronounced: for social practices, from 47% to 10%, and for governance practices, from 46% to 7%

Sustainability and Bitcoin: an open challenge

When it comes to sustainability and Bitcoin, the primary challenge is the energy consumption required for mining, which we covered in depth in this article on Proof-of-Work from 2021. Considerable progress has been made since then, so much so that the CCAF (Cambridge Center for Alternative Finance) of the University of Cambridge, in a report published in April 2025, estimated that to date 52.4% of the energy used for mining comes from sustainable sources – of which 23.4% from hydroelectricity, 15.4% from wind power and 9.8% from nuclear power. 

There are also other innovative ideas, such as in the case of El Salvador, which is implementing a mining system based on the integration of geothermal energy from the volcanic region and solar and wind energy. In addition to production, there is also talk of energy recovery. MARA, one of the world’s largest mining companies, is mining Bitcoin by converting Associated Petroleum Gas (APG) into electricity. APG, put simply, is a gas that is discarded during the extraction of oil and then burned or dispersed into the atmosphere. Here, instead, it is recovered and converted into electricity through combustion to power mining centres, saving costs.

ESG in the future: What’s the point?

And so, as is often said, nobody has the glass ball. The dilemma is always the same: is this the end of ESG funds, or is it just a time of readjustment? What idea did you get from reading the article? If in doubt, subscribe to Young Platform and stay up-to-date on what’s important!

Nintendo shares: Switch 2 drives the stock

Actions Nintendo : Switch 2 relance le titre en Bourse

Nintendo’s shares, listed on the Tokyo Stock Exchange (TSE), have doubled in value over the past two years, representing a 93% increase. Will the trend continue?

Nearly eight years after the original launch of the Switch, Nintendo has officially announced the release of the Switch 2, scheduled for June 5. Fueled by speculation regarding the new console, the stock has surged by 93% over the past two years, climbing from approximately 5,600 yen ($38.60) to its current price of 10,040 yen ($70.50). What are the future forecasts for the stock?

Nintendo shares: the rally begins with Switch

With the launch of the first Nintendo Switch in 2017, Nintendo successfully overcame the challenges that had caused many iconic companies from the 1990s to 2010s to fail, such as Blockbuster, which struggled to adapt to change. After the disappointing performance of the Wii U, Nintendo found itself at a crossroads, as the gaming landscape was undergoing a significant transformation. The market seemed to have little room left for the ‘old-fashioned‘ consoles that had defined the childhood of entire generations.

Recognizing the need for a clear change—a ‘switch’—the company’s top management initiated work on the new product. As rumors began to circulate, Nintendo’s share price soared by 74% in July 2016. By March 2017, when the Switch was launched, the share price jumped from 2,300 yen to around 7,800 yen by June 2021, marking a remarkable increase of 190%. However, as innovation continued to accelerate, the Switch began to feel outdated, and the demand for an upgraded model started to grow.

Nintendo and Switch 2 shares: the stock’s resurgence

Nintendo shares experienced a decline, losing up to 25 percent between 2021 and 2023, reaching a low of 5,000 yen ($33.80). While the Nintendo Switch performed well, selling more than 120 million units by the end of 2022 and ranking among the top three best-selling consoles of all time, following the Nintendo DS and the PlayStation 2, it had been six years since its launch, leading fans to desire something new. 

As rumors about the next product began to circulate, the share price rose by 30% from April to July 2023, stabilizing between 6,000 and 6,500 yen (between $40 and $45). This rally was fueled by excitement surrounding various statements, leaks, and significant news, such as the reduction of the Saudi sovereign wealth fund’s (PIF) stake in the company, which enhanced the perception of Nintendo’s financial stability and reduced exposure to speculation. 

The long-awaited Switch 2 was finally revealed on YouTube on January 21, 2025. Following this announcement, Nintendo shares reached an all-time high (ATH) on February 19, hitting a peak of 11,800 yen ($78.70).

Nintendo shares and the future: duties could complicate the situation

Since reaching an all-time high (ATH) of 19,000 yen on February 19, Nintendo shares have declined by just over 12% and are currently hovering around 10,000 yen. This decline can be attributed to several factors. Firstly, there has been negative news, including the postponement of the sale date to June 5 (originally scheduled for early spring) and concerns that the price of €469/$530 is too high. Secondly, the economic policies and tariffs associated with the Trump administration could further increase prices, particularly in China, which is one of the most important and profitable gaming markets in the world. Looking ahead, TradingView surveyed 23 analysts for their one-year projections on Nintendo’s stock performance. The highest price estimate is 16,000 yen (+59%), while the lowest is 6,000 yen (-39%), with an average estimate of 11,530 yen (+14%). Will Nintendo manage to defy expectations once more? Sign up to stay updated!

Investing with artificial intelligence: the future of finance?

Investing with AI: the future of finance?

Investing in the stock market using artificial intelligence is a trend worth monitoring. What are its applications? Is it the future of finance?

Increasingly, financial players are leveraging artificial intelligence to invest in the stock market. The integration of AI-based systems and algorithms in portfolio management and trading is a trend worth exploring. In this article, you will find all the details about the implementation of artificial intelligence in investments. Happy reading!

Why invest in artificial intelligence? 

As psychologists and economists, Herbert Simon demonstrated that individuals never make entirely rational decisions because several factors limit their rationality. These factors include the amount of information available, the cognitive limitations of the mind, and the time constraints that prevent entirely rational and impartial decision-making. In the world of finance, where individual decisions significantly impact outcomes, haste and emotions often influence buying and selling transactions. Have you ever purchased out of fear of missing out (FOMO) or sold your holdings because the market was crashing? In this context, artificial intelligence can help mitigate the influence of human factors, as it does not face the same structural limitations that Simon identified in our thinking.

As we shall see, artificial intelligence can be a fundamental aid to financial traders in various ways, from processing vast amounts of data to risk management, as well as in portfolio composition and trading automation. Of course, not all that glitters is gold: as we will see later in the article, an investment strategy cannot be based on AI. But let us go step by step.

How to use artificial intelligence to invest in the stock market?

Integrating artificial intelligence into investments involves using technology that merges financial analysis and data science with machine learning. This approach utilises systems that can examine vast amounts of economic data to identify recurring patterns and correlations. Artificial intelligence is capable of analysing and processing both quantitative data, such as balance sheets, price movements, and trading volumes, as well as qualitative data, including images, text, and sentiment from social media.

Artificial intelligence (AI) can provide a broader perspective and offer a more comprehensive overview of financial data. It enables the real-time analysis of hundreds of publicly traded companies using specialised financial software, such as AlphaSense, Kensho, or IBM Watson. Initially, this innovation was primarily leveraged by financial giants, such as hedge funds and asset management firms. However, investing in the stock market with AI tools is no longer exclusive to these large players, and we will explore how that has changed. So, how is AI applied in the finance sector?

Artificial intelligence and investment: use cases

As we anticipated, artificial intelligence significantly impacts financial strategies by streamlining and optimising processes that would otherwise be time-consuming. It also helps to mitigate the effects of haste and emotions in decision-making. Now, let’s explore specific functionalities that highlight the attractive synergy between artificial intelligence and investments:

Predictive analysis and price forecasting

Investing with artificial intelligence (AI) has become one of the most sought-after functions in the financial world. AI systems are capable of analysing vast amounts of both quantitative and qualitative data, ranging from fundamental company analysis to social media posts. They can identify complex patterns that may elude human analysts or traditional statistical algorithms. The goal is to discover correlations that could indicate potential future price movements. While academic research has shown that these systems can accurately predict economic scenarios, it’s essential to remember that market unpredictability is an inherent variable that must be considered in both analysis and decision-making.

Algorithmic and High-Frequency Trading (HFT)

Artificial intelligence (AI) can process vast amounts of information in fractions of a second, making it valuable for developing and executing algorithmic trading strategies. Algorithmic trading involves using algorithms to conduct trades automatically based on predefined rules. AI algorithms can be trained to perform financial transactions efficiently and at high speeds.

High-Frequency Trading (HFT) is a specialised​​ type of algorithmic trading that leverages AI’s computational power to execute trades in less than a millisecond. This method capitalises on market micro-inefficiencies, such as arbitrage opportunities. Due to the requirement for significant liquidity and advanced, costly systems, HFT is predominantly utilised by major financial institutions, including hedge funds and investment banks.

Sentiment analysis

The emotional nature of the markets is well-known, and artificial intelligence can be a valuable tool for investing. It can summarise investor sentiment through textual analysis. Unlike traditional news classification algorithms, which usually provide a binary assessment—simply labelling sentiments as ‘Yes/No’ or ‘Positive/Negative’—artificial intelligence conducts a more in-depth analysis of the content. It examines contextual elements such as ‘why‘ or ‘when,’ resulting in more accurate insights.

Portfolio optimisation and risk management

Investing with artificial intelligence involves using AI systems for the construction and management of investment portfolios. AI algorithms can analyse historical data to identify assets that are likely to perform well under specific market conditions. After a portfolio is assembled, AI systems can monitor its performance and suggest adjustments or dynamically rebalance it based on investment objectives or changing market conditions.

Risk management, which involves measuring risk to develop strategies for containment or reduction, can also benefit from the application of artificial intelligence. AI systems can create sophisticated risk models that take into account adverse macroeconomic variables, such as potential international conflicts, as well as portfolio vulnerabilities, like excessive exposure to specific sectors. Once critical issues are identified, the AI can recommend strategies to mitigate and reduce these risk factors.

Extraction of synthetic data:

Thanks to advancements in computing speed and machine learning, artificial intelligence can create realistic market scenarios by combining historical data—such as the dot-com bubble and the 2008 financial crisis—with synthetic data. This allows AI to generate models or portfolios optimised for specific situations. For example, if we had asked an AI in 2021 to provide an overview of market reactions to a hypothetical Russian invasion of Ukraine (which occurred in 2022), it would likely have predicted a rise in commodity and energy prices, enabling the development of a tailored strategy.

Retailers can also invest in the stock market with artificial intelligence

In recent years, several tools and platforms based on artificial intelligence have emerged, making this technology accessible to the retail market of individual investors. These include: 

AI-based Robo-Advisors

Automated investment platforms that use algorithms to create and manage portfolios structured on questionnaires that reflect the retail investor’s preferences (risk, time horizon, objectives). The advantages of these instruments primarily concern management costs and access to capital, which are typically lower than average. However, the excessive responsibility entrusted to algorithms could prove counterproductive in situations of high volatility. Specifically, significant price fluctuations could ‘throw off’ the criteria that manage the operations of robo-advisors and lead them into error.

Trading platforms with integrated AI

Many trading platforms have begun to incorporate AI-related features to enhance investment efficiency. TrendSpider is one of the most popular platforms, offering automated technical analysis and tools for designing and testing algorithmic strategies without the need for coding. Other tools are focused on generating real-time trading signals or implementing algorithmic trading.

AI-managed ETFs

These are exchange-traded funds (ETFs) that are constructed and managed by artificial intelligence (AI) algorithms. They incorporate functions such as portfolio optimisation and risk management, enabling individual investors to harness the potential of artificial intelligence for stock market investments. One example is the Amplify AI-Powered Equity ETF (AIEQ), which analyses millions of data points using IBM’s Watson.

Sentiment and market analysis with generative AI

Chatbots like ChatGPT, which we use daily, can serve as aggregators of financial news and also help us deepen our understanding of the topic. However, it’s essential to fact-check the information provided, as it may be out of context or outdated.

Not only traditional finance, but also artificial intelligence and cryptocurrencies

Artificial intelligence and cryptocurrencies are two fields that share many similarities and represent some of the most significant technological advancements of our time. Within the crypto space, there is a specific sector focused on integrating AI with blockchain technology, commonly referred to as Crypto AI. Cryptocurrencies like Render (RNDR), The Graph (GRT), and Near (NEAR) are designed to decentralise AI services, ensure the authenticity of information through blockchain transparency, and enhance data computing and storage capabilities.  

Using human intelligence to invest in the stock market with artificial intelligence 

The tools we’ve just explored have significant potential in both traditional and decentralised finance. However, it’s essential to stay informed and critically assess both the advantages and disadvantages of investing with artificial intelligence (AI). Often, when a disruptive technology like AI emerges into our lives, there’s a risk of becoming overly fascinated and falling into traps set by those who exploit the excitement surrounding these innovations.

A rise in AI-related fraud has unfortunately accompanied the growth of AI. According to the American Securities and Exchange Commission (SEC), there has been an increase in unregistered and illegal trading platforms, as well as scam platforms that utilise artificial intelligence (AI) to appear credible. These fraudsters may use AI to create deepfake videos or produce fake phone calls from authoritative figures, thereby manipulating potential victims. They also design convincing websites and generate promotional content to enhance the perceived legitimacy of their platforms.

It’s crucial to remain grounded and use our judgment to avoid unpleasant situations. Take the time to study the platforms and make informed decisions—don’t let the fear of missing out (FOMO) influence you. In the meantime, stay informed: at Young Platform, we continually publish relevant news updates. Subscribe below to stay updated!

High fashion: Who was Charles Frederick Worth?

Haute couture: Who was Charles Frederick Worth?

Haute couture is an industry focused on creating unique, high-quality clothing. What is its origin and history?

Haute couture, a term meaning “high sewing” in French, originated in Paris through the vision of an English gentleman. With the assistance of his wife, he succeeded in capturing the hearts—and wallets—of the wealthiest ladies in the French aristocracy, upper middle class, and beyond. Today, this industry is worth billions and caters primarily to the wealthiest 1% of the world’s population. Let’s explore the history of the legendary Charles Frederick Worth and his wife!

High fashion: a very special niche 

Haute couture refers to high-quality garments that exemplify exceptional craftsmanship and represent the pinnacle of the fashion industry. Clothing in this category, designed by fashion house stylists, must meet specific standards set by the French Ministry of Industry and the Fédération Française de la Couture. These standards include four essential criteria that define haute couture.

A maison, which refers to a production company, must exclusively create made-to-measure clothing to hold the haute couture label. Each haute couture dress is unique and can be viewed as an actual non-fungible piece of art. Additionally, the maison must have an atelier in Paris with at least twenty full-time technical staff members. Lastly, it is required to present its collections twice a year, in January and July, showcasing a total of 50 original designs for both day and evening wear.

Rose Bertin was a French milliner who lived during the late 18th and early 19th centuries. She is regarded as the pioneer of haute couture for creating original custom-made dresses for Marie Antoinette, the wife of Louis XVI and Queen of France. However, the formal concept of haute couture is more accurately attributed to Charles Frederick Worth, who became prominent in Paris about thirty years later.

In any case, the high fashion industry, as you may have guessed, is based on the concept of scarcity—a principle that we at Young Platform adore, almost as much as the digital asset that best embodies it: Bitcoin. But back to us. The prices of the garments, which hover between tens and hundreds of thousands of euros, are justified precisely by their irreplicable nature, as well as by the infinite number of hours required for production – 150 for a simple dress, 1,000 (41 days) for a piece with delicate embroidery and finishing touches. Of course, the materials chosen also play a significant role in the final cost calculation. 

High fashion: how, when and where?

As we have already mentioned, the invention of haute couture is attributed to Rose Bertin, who, however, cannot yet be called a ‘designer’ since this profession was not yet established after the French Revolution. And this is where our Charles Frederick Worth comes in: born in 1825 in Lincolnshire, England, he moved to London at the age of 13 and began working in an extensive fabric warehouse on the famous Regent Street, where he came into contact with the world of silk and fabrics. At the age of 20, in 1845, he moved to Paris, already the European centre – and not only – of fashion, where he worked as an assistant at the fabric boutique Gagelin. It was here that his life changed: it was his acquaintance with Marie Augustine Vernet, his future wife and inspirational muse, that made his breakthrough. But we will get there.

Worth proves to be an excellent salesman as well as a great fabric expert and has all the makings of a career. In fact, after five years, he became head of the tailoring department of the Gagelin boutique and, in 1853, an equal partner with the other two owners. Things seemed to be going well, but after a few years, the moment of break came: Worth was ready to strike out on his own and in 1858 opened his atelier at 7 rue de la Paix.  

Charles Frederick Worth and Marie Augustine Vernet: Let the Revolution begin

Charles Frederick Worth and Marie Augustine Vernet, together, are the architects of a real revolution in the universe of fashion as it had been conceived until then. Charles was already a respected tailor in mid-nineteenth-century Paris, but the real turning point was the result of a move as shrewd as it was daring on the part of Marie Augustine. Aware of the power of word of mouth among high society women, the designer’s wife decides to sell two dresses to the Princess of Metternich at a ridiculous price – almost a gift. The princess chose to wear one of them to the ball at the Tuileries, the main venue of the Parisian elite. Her dress, beautiful and different from the usual, caught the attention of the most influential woman of the French jet set: Empress Eugénie de Montijo, wife of Napoleon III, Emperor of France from 1852 to 1870. Charles Worth, from then on, became the court tailor and official supplier to the Empress of France. 

Charles Frederick Worth became the most important and popular stylist among the ladies of the Parisian Gotha and, with him, there was a clear reversal of perspective: whereas before it was the women, aristocratic or upper-class, who commissioned the textile artisans, choosing the fabrics and creating the models, now it was the stylist who proposed the clothes and, therefore, dictated the fashion. 

Our Charles is also responsible for two of the most important innovations the fashion world has seen: the first concerns the division of collections according to season; the second refers to the use of ‘living models‘ rather than mannequins, as was traditional up to that time – his wife Marie is considered the first model in history. Charles Worth, in essence, invented fashion shows. 

In 1868, he was one of the founders of the Syndicale de la Haute Couture (Chambre Syndicale de la Couture), a collective fashion decision-making body, of which today some 100 of the world’s most important fashion houses, including Balenciaga, Balmain, Jean Paul Gaultier, and Versace, are members. This apparatus also has the power to decide who can use the term ‘haute couture‘ and who cannot, based on compliance with the requirements we have mentioned. 

Charles Frederick Worth died in 1895, and the administration of his maison, the House of Worth, passed into the hands of his wife Marie and son Gaston. The second son, Jean-Philippe, on the other hand, followed in his father’s artistic footsteps: in 1903, he created the famous Peacock Dress for Mary Victoria Curzon, wife of the Viceroy of India and therefore Viceress. The fashion house was officially sold to the French fashion house Paquin in 1953.

Haute couture on show: Charles Frederick Worth’s dresses at the Petit Palais in Paris

From 7 May to 7 September – we hypothesise that the choice of 7 is due to the street number where he opened his atelier, 7 rue de la Paix – in the splendid setting of the Petit Palais in Paris, the first exhibition dedicated to the inventor of haute couture and his House of Worth maison will take place. For the occasion, we are talking about more than 400 objects from the most important museums in the world, from the Palazzo Pitti in Florence to the Metropolitan in New York, passing through the Victoria and Albert in London: paintings, accessories and above all clothes designed and created by Charles Worth dating back to the historical period between the Second French Empire (1852-1870) and the first post-war period. 

Long-term Investing ETF on S&P 500 or Bitcoin?

S&P 500 ETF or Bitcoin: Which Is Better for Long-Term Investing?

Is it still wise to invest solely in S&P 500 ETFs? We compare this traditional strategy with Bitcoin.

The long term is generally considered safe, but as Keynes noted, “In the long run, we are all dead.” The idea of the long run is often associated with investing in assets that have a medium to high risk and volatility profile, as time is the key factor that increases the likelihood of a positive return.

But is the best investment strategy really to simply buy an ETF that tracks the S&P 500 and wait 30 years?

The time horizon in which one invests is a personal factor

The statement that concludes this introduction is likely something you’ve heard before, and it holds a kernel of truth. Since the 1980s, the main index of the US stock market has increased by over 6000%. However, the investment horizon varies for each individual, primarily depending on the investor’s goals.

While a longer investment horizon—especially for equity investments—can increase the likelihood of achieving a positive return, it’s essential to recognise that this probability will never reach 100%. In other words, a risky investment can never guarantee a predictable return.

Time is our greatest ally as investors. Unless we want to bet against the market, it’s best to let it work in our favour. Time also enables us to maximise the benefits of compound interest, which is essential for achieving outstanding results over the long term.

While compound interest drives returns on established indices like the S&P 500, the modern market also offers instruments that promise exponential growth in potentially shorter timeframes, albeit with varying degrees of risk. This perspective aligns perfectly with the ongoing debate surrounding Bitcoin.

The alternative: Bitcoin

The approval of spot Bitcoin ETFs in January 2024 made an investment that was previously confined to complex procedures accessible to a wider audience. This raises a question: Can Bitcoin, or its ETFs, serve as an alternative or complement to the S&P 500 in a long-term portfolio?

The most obvious argument in favour is related to the potential asymmetric return: against a risk of total loss, there is a growth potential of several orders of magnitude, much higher than that of a mature index. Theoretically, then, Bitcoin could also act as a diversifier, given its historically low correlation with equities, although this tends to increase during periods of high financial stress.

However, the critical points are equally important. The first is extreme volatility. While the S&P 500 has suffered 30-50% crashes in conjunction with epochal crises, Bitcoin has regularly experienced 7 drawdowns of 0-80%. A very long time horizon may not be enough to recover if you enter a market peak.

Second, unlike the S&P 500, which represents the ownership of real companies that generate profits, Bitcoin does not produce cash flows. Its value is driven solely by the law of supply and demand, relying on trust and its planned scarcity. This makes it more like a digital commodity than a productive investment. Finally, regulatory uncertainty should not be overlooked: as a young asset, it is exposed to future regulatory changes that could drastically impact its value.

Conclusion: What is the best strategy?

So, can the Bitcoin ETF stand alongside or even replace the S&P 500 in a long-term perspective? The answer, again, is not unambiguous and goes back to the heart of our discussion: it depends entirely on the risk profile, objectives and awareness of the individual investor.

For those seeking stable, relatively predictable growth based on economic fundamentals, passive investing in the S&P 500 remains the most logical and proven choice.

For those with a very high risk tolerance, who understand the speculative nature of the asset and want to allocate a small portion of their capital to a potentially disruptive technology, an ETF on Bitcoin may be an interesting addition.Ultimately, the question is not which of the two is ‘better’ in absolute terms, but which is the most suitable instrument to help us achieve our personal goals, accepting a level of risk that we can live with peacefully over the long, and sometimes turbulent, period.

The ranking of the tallest skyscrapers in the world

Les plus hauts gratte-ciel du monde : classement 2025

The world’s tallest skyscrapers are primarily located in Asia and were constructed in the past 15 years. Here is the ranking.

Constructing the world’s tallest skyscraper has been a challenge for nearly 150 years, dating back to the Home Insurance Building, which was completed in Chicago in 1885. Since that time, skyscrapers have emerged in numerous cities, serving both urban planning needs and symbolic purposes related to power and status. Today, advancements in technology allow skyscrapers to achieve remarkable heights. Explore the current ranking of these towering structures!

The ranking of the 10 tallest skyscrapers in the world

Thanks to recent technological and construction innovations, engineers worldwide have designed skyscrapers that challenge the laws of physics in terms of height and grandeur. This top 10 list includes completed buildings only, excluding those that are under construction or in the planning stage. Let’s explore together the 10 tallest skyscrapers in the world.

  1. Burj Khalifa, Dubai: 828 m

The Burj Khalifa, situated in the capital of the United Arab Emirates, has held the title of the world’s tallest skyscraper since its completion in 2010. This engineering marvel features approximately 185,000 square meters of indoor living space and comprises 163 floors. It accommodates offices, hotels, and residential apartments.

  1. Merdeka 118, Kuala Lumpur: 679 m

This skyscraper, completed in 2023, is among the newest additions to its category. Known as PNB118 and KL118, it features offices, a hotel, and a five-story shopping centre. Construction began in 2014 and took approximately seven years, costing around USD 2.5 billion.

  1. Shanghai Tower, Shanghai: 632 m

Ranking third among the world’s tallest skyscrapers, this impressive building is renowned for its aesthetics. Its curved, spiralling façade symbolises China’s transformation from poverty to economic prosperity. The Shanghai Tower is also one of the most sustainable skyscrapers globally, thanks to its choice of materials, advanced ventilation systems, and the integration of renewable energy sources.

  1. Mecca Royal Clock Tower, Mecca: 601 m

The Mecca Royal Clock Tower is part of a building complex known as Abraj Al Bait and is situated above the Holy Mosque of Mecca and the Kaaba, which is considered Islam’s holiest site. The clock in this tower has a diameter of 43 meters, making it the largest in the world by area and also the tallest. The tower houses a hotel that can accommodate approximately 100,000 pilgrims. Completed in 2012, the construction of this skyscraper cost an estimated $15 billion, which may make it the most expensive building in the world.

  1. Ping An Finance Centre, Shenzhen: 599 m

Completed in 2017, it is the second-tallest skyscraper in China and, like the Shanghai Tower, carries significant symbolic meaning. Its impressive height reflects the remarkable growth of Shenzhen, a city whose population has surged from 60,000 to 13.5 million since 1980. Additionally, it is the second-largest skyscraper in the world by total area, boasting a floor space of approximately 500,000 m².

  1. Lotte World Tower, Seoul: 555 m

The Lotte World Tower is the only building from South Korea included in the ranking. Its design is inspired by the country’s culture: the tapered shape resembles brushes used in Korean calligraphy, while the clear glass exterior reflects the region’s traditional ceramics and porcelain. With 123 floors, the tower features a 7-star luxury hotel, office spaces, and residential apartments.

  1. One World Trade Centre, New York: 541 m

Also known as the Freedom Tower, One World Trade Centre is the tallest skyscraper in the Western Hemisphere. The building holds significant symbolism for several reasons: its height of 1,776 feet commemorates the year of the United States Declaration of Independence, and its construction, which was completed in 2014, symbolises rebirth following the tragedy of September 11, 2001. In fact, the soaring Freedom Tower represents a vision for the future, while the 9/11 Memorial, which is set lower to the ground, serves as a poignant reminder of the past.

  1. Guangzhou CTF Finance Centre, Guangzhou: 530 m

Known as the East Tower, this building is the third-tallest skyscraper in China. It was designed and engineered by the same firms that created the Ping An Finance Centre in Shenzhen, which is the fifth-tallest skyscraper in the world. The East Tower features 111 stories and includes office spaces, luxury apartments with inner courtyards, a five-star hotel, an indoor swimming pool, as well as various bars and restaurants.

  1. Tianjin CTF Finance Centre, Tianjin: 530 m

Although the Tianjin CTF Finance Centre and the Guangzhou skyscraper are the same height, the Tianjin CTF Finance Centre ranks ninth among the world’s tallest skyscrapers. This ranking is due to differences in measurement techniques. Factors such as architectural height, measured without including antennas, and other parameters like the height of the highest occupied floor and the total number of floors are considered. The Guangzhou CTF Finance Centre ranks slightly higher because it performs better in these two specific categories.

  1. CITIC Tower, Beijing: 528 m

The final skyscraper among the tallest in the world is located in the Chinese capital and is known as China Zun. This building, like many others in Asia, holds significant symbolic value: the “zun” is an ancient Chinese ceremonial vessel, and the architecture of this remarkable structure is inspired by its shape. An interesting fact about the skyscraper is that from its top three floors, one can see Zhongnanhai, the headquarters of the Chinese Communist Party. In 2018, the Hong Kong newspaper Ming Pao even proposed expropriating the building for national security reasons.

Now that you know the top 10 tallest skyscrapers in the world, you may be inspired to book a trip to see them in person. By joining one of our clubs, you can enjoy discounts on your travels, so take advantage of this opportunity!

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How to make money: beyond the promises of the gurus

How to make money: beyond the promises of the gurus

How can one make money? This question has been asked throughout history, and while many TikTok gurus offer dubious advice, this guide provides solid arguments. Let’s get started!

Sellers of miraculous amulets and infallible methods to become highly wealthy have always existed. Humans inherently desire to believe there are ways to achieve maximum results with minimal effort. With the rise of the internet, these merchants of false promises have multiplied, crafting increasingly absurd strategies. Today’s goal is to dismantle these ridiculous illusions and, more importantly, to provide you with serious (though more labour-intensive) alternatives for increasing your wealth. Enjoy the journey!

The Fuffa Guru, who tells you how to make money 

In 2024, the authoritative Treccani encyclopedia included the neologism “fuffa guru” in its vocabulary, defining it as “one who, exploiting marketing techniques, organises and manages courses, videos, and seminars on the internet for profit, while fraudulently promoting easy ways to make money.” This definition is perfect, elegant, and highly realistic. The fuffa guru is a merchant of illusions, presenting himself as a modern hero. 

Often emerging from the poorer segments of society, he may have experienced a childhood steeped in abject poverty, initially despised by those around him and later burdened with debt. He is an outcast who feels destined to remain among the marginalised. However, the fuffa guru refuses to accept this fate. Driven by an insatiable desire for wealth and an even stronger thirst for revenge, he ultimately realises,This is not my destiny.” He believes that “a change of mindset is necessary because poverty is a state of mind, not merely a lack of money.”

The fuffa guru shares his story of sleepless nights devouring books and completely renouncing parties, birthdays, and weddings, stating, “While others were busy collecting gigs, I was busy collecting skills.” He uncovers secrets that the masses- the 99%—%-overlook, takes the red pill, and exits the Matrix. The fuffa guru is now prepared for the climb to success. Armed with a new mindset and the knowledge he has gained, which will form his ‘method’, he proudly claims to have achieved wealth rapidly and exponentially. Reflecting on his journey, he expresses gratitude to himself “for not being weak and for not giving up.”

In the final phase of his story, he enjoys a life of unrestrained luxury between Dubai and Manhattan, travels on private jets, and drives Lamborghinis. This lavish lifestyle serves as concrete proof that his method is effective and that anyone, by adopting the right mindset and following his advice, can attain similar success, though it comes at a cost. But what does this infallible method entail?

Making easy money, fast and effortlessly: the fuffa guru’s formula

Despite the absence of evidence of his work experience or how he amassed his supposed fortune, this self-proclaimed guru insists on teaching you how to make money quickly and effortlessly. His motive, he claims, is to share knowledge and help you achieve financial freedom. How does he propose to do this? He charges hundreds, if not thousands, of euros for access to his seminars and webinars, where you can listen to him speak.

The formula for wealth he promotes inevitably revolves around the same side hustles. He talks about dropshipping, explaining how to create a successful online store without the need to hold inventory, all while promising high profits with minimal effort. Alternatively, he may introduce you to “passive” affiliate marketing basics. This method automatically generates enormous passive income through affiliate links, allowing you to earn commissions on promoted products.

Another recurring theme is network marketing, often accompanied by the enticing phrase “become your entrepreneur!” In this model, making money hinges on selling products (such as cosmetics, supplements, or services) while primarily focusing on recruiting others to join your network. These recruits, in turn, would earn money by bringing in even more recruits. Does that sound familiar?

It’s important to highlight the concept of real estate flipping, which involves purchasing, renovating, and selling a property for a higher price. This method is often combined with real estate arbitrage, where an individual rents a property long-term and then sublets it to generate a return on their investment. 

Additionally, we can’t forget about online trading, which is often seen as the ultimate opportunity by those participating. Many enthusiasts claim that ​​dedicating just a few minutes a day, it’s possible to earn substantial amounts of money through supposedly foolproof signals and highly confidential techniques taught in expensive, exclusive courses. But are these methods as effective as they claim to be?

What the fuffa gurus don’t tell you 

When they ‘explain’ how to make a lot of money quickly and effortlessly, the so-called gurus conveniently forget to mention the downsides of these activities, which, let’s remember, are legal and legitimate. 

For example, dropshipping comes with various expenses related to advertising, shipping, and supplier management, along with the need for customer service. Additionally, the market is highly competitive, and the risk of losing large quantities of unsold inventory is significant.

Switching to affiliate marketing, it’s essential to understand that generating passive income requires high traffic. This means that many users must purchase a product through your specific link. You might achieve this if you are an influencer with tens of thousands of followers. Otherwise, you must build a large audience, create valuable content, and invest in SEO and advertising—hardly a passive endeavour.

Multi-level marketing is essentially a refined and professional term for a pyramid scheme or Ponzi scheme. The profits predominantly come from new participants recruiting additional newcomers, and like any Ponzi scheme, it is, by nature, doomed to collapse.

When it comes to side hustles in real estate, many successful figures fail to mention that you need collateral and substantial initial financial resources to start a business in this field. Additionally, online trading— especially intraday trading that involves significant (and often unintentional) leverage — can be hazardous. It’s no secret that most retail traders (over 90%) who engage in these trades lose money. While it is possible to make money trading, it requires thorough research, strong skills, and capital to invest. Often, claims of infallible signals and secret techniques are ineffective or even scams.

Now that we’ve addressed the illusions of success, let’s move on to more serious matters.

How to make serious money: Patience is the virtue of the strong

Generating passive income is possible but requires time, patience, and financial investment. One popular method is affiliate marketing, which can be effective but often stems from prior work. To earn significant commissions, you need traffic, which can only be achieved after creating a quality product.

Being a content creator is a legitimate career today, but demands dedication, effort, passion, and specific skills. Investing in real estate is also a time-honoured activity that many Italians are enthusiastic about; we are fond of bricks and mortar! However, initial financial capacity and support from specialists for market analysis and legal and commercial advice are required.

A more accessible option could be real estate crowdfunding, a collective financing method where multiple individuals invest together in real estate projects to share profits. This type of crowdfunding is divided into two categories: lending crowdfunding, which allows lenders to provide funds for real estate transactions in exchange for interest; and equity crowdfunding, in which investors purchase shares in a company, becoming partners who share in both profits and losses.

In conclusion, we cannot overlook stock market investments if asked how to make money and grow our capital. However, it’s important to clarify that we are not referring to speculative trading, but rather to the art of long-term investing. John Bogle, the founder of Vanguard, strongly advocated passive investing through low-cost index funds. His philosophy was built upon several key principles, including broad diversification, minimal costs, a long-term perspective, and a risk-adjusted asset allocation. This approach involves holding funds that reflect market trends, such as the Total Stock Market or Total Bond Market, over many years, typically in the form of Exchange-Traded Funds (ETFs).

Long-term investing pays off, the data says so

Many gurus promoting easy money strategies overlook the importance of investments when discussing ways to make money. They typically start with the obligatory disclaimer:past returns are not indicative of future returns” because predicting the future is impossible. However, historically, long-term investing in the stock market has proven to be profitable. 

For instance, the S&P 500, one of the most well-known indices representing the 500 largest publicly traded companies in the U.S., has achieved an average annual real return of 6.5%, adjusted for inflation. Similarly, the MSCI World index, which includes the largest publicly listed companies worldwide, has reported average annual real returns of 5.6%

It’s important to factor in the power of compound interest, which Albert Einstein called “the eighth wonder of the world.” Practically, leveraging compound interest means reinvesting the returns earned to generate additional returns. This creates a “snowball” effect: as the snowball rolls down a slope, it accumulates more snow, increasing its size and accelerating its speed.

Let’s consider an example involving a TikTok guru who offers lessons on making money through dropshipping. They charge €50 for an introductory lesson, €500 for a comprehensive basic course, and €2,500 for an advanced course, totalling €3,050. The question is: Will this investment be successful? It’s impossible to know for sure.

Let’s compare that investment with putting the same amount into the S&P 500 for 20 years. Based on historical data and reinvesting profits, you could potentially end up with around €10,500 at the end of this period. 

While neither scenario can guarantee a specific outcome, nearly 70 years of historical data and academic research inform our decisions regarding the S&P 500. In contrast, when it comes to the TikTok guru, we can often only rely on an inflated online persona supported by fake followers and rented cars for show.

 An inflated online persona supported by fake followers and rented cars for show.

The road to making money is long and winding, and the gurus know it.

Understanding how to earn a substantial amount of money without enduring long waits or struggles is a human desire. Even those who sell false promises of happiness are often just looking for creative—and sometimes deceptive—ways to achieve this. Consider this: why would someone who travels in private jets, drives only Lamborghinis, and dines exclusively on Kobe beef tartare waste time attending lengthy seminars and engaging in one-on-one calls? Is it to “diversify”? Or to “help humanity”? Or perhaps because the real way to get rich effortlessly is for you to purchase their course? The answers are clear.

Instead of relying on dubious figures found online, it is wiser to roll up your sleeves, study, and explore more realistic and legitimate alternatives, such as long-term investments in the stock market. If you’re interested in this topic, we at Young Platform regularly publish content on subjects like why you should invest in Bitcoin for the long term. Subscribe below to stay updated!

Emergency fund: what it is and why it is essential

Emergency Fund: what it is and why it is essential

The emergency fund serves as a personal treasury for unexpected events, and it can be a lifesaver. How is it created, and what is its significance?

Many people recognise the emergency fund as a well-known concept, but often postpone creating it. The reason for this is straightforward: an emergency is an unpredictable and distant event that tends to seem less urgent than immediate issues with tight deadlines. However, when an emergency does occur, it can lead to significant stress and anxiety. In this article, we will explore why building an emergency fund is essential and provide a step-by-step guide on how to do it.  

Have an emergency fund: Be the ant in a world of cicadas.

The importance of the emergency fund has been part of human culture since time immemorial, if we think that Aesop wrote the fable of ‘The Ant and the Cicada‘ more than two thousand years ago. Admittedly, the Greek author does not tell us about the emergency fund, but he makes us realise how important it is to arrive prepared for the challenges that life, sooner or later, presents us with. The cicada sings all summer and does not worry about winter. At the same time, the ant slowly accumulates the necessary supplies: the cold arrives, the cicada goes hungry, and the ant serenely enjoys the fruits of its labour

This moral, although simple and obvious at first glance, shoves reality in our faces. We know perfectly well that the future will come knocking sooner or later, but despite this, we are only willing to take the initiative when we feel the breath on our necks. The result? Total unpreparedness mixed with panic and stress. 

The emergency fund serves precisely to avoid these unpleasant situations and to continue living our lives in peace, regardless of accidents, surprises or sudden desires. It allows you to buy a new phone, repair your car, or even go see Green Day in Florence without having to – a random example – sell the Ethereum you staked on Young Platform. Now that its usefulness is obvious, let’s see how to build an emergency fund, step by step. 

Creating an emergency fund is challenging, but it can be done.

Before proceeding to set aside finances, one must understand one’s savings goal because it is uninspiring and unwise to hoard money to the bitter end. To do this, you need to track and analyse your monthly expenses, fixed and extra, such as rent, petrol, food, subscriptions and so on. You can write them down in pen, use Excel or make your life easier with a budget management app. Now, multiply the figure by three or six, depending on your needs: the result of this complex mathematical operation equals your savings target, because the primary purpose of the emergency fund is to allow you to live without a fixed income. Once you have worked out how much you need to save, creating a strategy to make it a reality is time.

Putting money aside is a test of great discipline: the art of saving has to come to terms with the human soul and its irrepressible and impulsive desire for gratification. Moreover, it is exhausting when the goal is a large sum of money because it seems so far away. To reduce this cognitive load, specific strategies allow you to reach your goal by taking advantage of time, i.e., by installing the set amount in periodic instalments. Of these, the famous 52-week challenge would take you a year to build up your emergency fund. If, on the other hand, you want to speed things up, the advice is to make a kind of accumulation plan and withdraw a fixed amount of money. In this case, remember the teaching of the well-known book ‘The Richest Man in Babylon‘: if you receive a fixed monthly income, take it out and then live on the rest, never the other way around. This means that if you earn €1,300 a month, you first take out €100 and then recalibrate your life based on the €1,200 that remains, as if the €100 had never existed. 

Let us give a practical example to avoid any doubt. Our example is Mario, a 28-year-old boy living in Milan who works as an office clerk. Mario writes down everything for a month and discovers that his essential expenses amount to about €1,185, divided as follows: 

  • 750€ rent per month for a two-room apartment (he was fortunate)
  • 100€ bills
  • 45€ internet (Wi-Fi and mobile)
  • 40€ vehicle subscription 
  • 250€ supermarket shopping 

Mario decides it is time to start thinking about an emergency fund. He is 28 years old, young and knows that if he loses his job, he will be able to find another one in a relatively short time. His fund, therefore, should correspond to four months’ expenses: 1185 x 4 = 4740€. He rounds up and opts for the 5,000€. At this point, he will just have to figure out how to accumulate it. 

Perfect. You know how much you have to save, and you also know how to do it. The time has come to work on self-control. Of course, being rigorous and consistent in saving does not imply embracing asceticism: nobody is asking you to be the new Mahatma Gandhi. It just means concentrating and understanding what you really need. An interesting technique is to wait until the next day and ask yourself, “Do I still need that limited edition poster with Walter White and Gus Fring having lunch in Los Pollos Hermanos?” Yes, you will still need it. But you have been practising, and this exercise might save you a little extra next time. 

Nice but… the emergency fund has a big problem.

Your emergency fund now exists and is no longer just a good New Year’s resolution. However, it doesn’t end there, there is still one hurdle to overcome, the number one enemy of savings, the final boss: inflation. Indeed, in theory, this liquid treasure you have built up with so much effort, like a bit of ant, is destined to stay put for quite a while – knock on wood – because it is meant for emergencies. The problem is that time passes, inflation rises, and your emergency fund loses value.

You thought you had the solution ready to face the final boss, huh? Super Mario had to cross eight worlds to defeat Bowser and retrieve Peach. All you have to do is sign up below and read the articles we post about it, like this one. Until next time!