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Where this multimillionaire CEO thinks you should invest $20,000

The New Investors video series brought to you by Yahoo Finance reveals the secrets of successful entrepreneurs and business people in Australia today. This is the 19th episode of the second season.

With the share market losing $70 billion in value over the last week due to the coronavirus outbreak, some of you might be seeing the losses as an opportunity to buy stocks at a cheaper price

If that’s you, but you’re unsure where exactly to invest, multimillionaire and CEO Nick Bell advises you to play it safe. 

“Blue chips, like Amazon or Google, or Facebook,” Bell told the Yahoo Finance New Investors: My Story host Sarah O’Carroll.

“Only invest what you can afford to lose. If you want a safe bet, go blue chip stocks.”

And though he’s been known to invest in his mates’ startups as well as the high-risk cannabis industry, he doesn’t think you should do the same. 

“There’s a lot of hype around the cannabis industry,” Bell said. “Don’t jump into it.

“Cannabis is very high risk. Yes, you may make money, but can you afford to lose $20,000 thousand dollars? Because there's a good chance you will.”

And startups?

Where should you invest $20,000? Multimillionaire and CEO Nick Bell has the answers. Source: Getty

“That’s legalised gambling,” Bell said.

“At the end of the day, there’s so many variables. The founder, or founders… Are they hardworking? Are they hungry? Have they got personal problems? Has a husband or wife left them, or about to leave them?”

Bell said he no longer invested in pre-revenue startups, because there’s simply too much uncertainty. 

“You just don't know what's going to happen. If it's an idea on paper, I'm like, ‘mate, I'm not touching that’. Won't touch it. I only invest in businesses that I understand the industry.”

Bell’s next big venture

While Bell is urging risk-averse investors to steer clear of cannabis right now, it’s something he still believes could take off

“I'm quite passionate about alternative medicine, biohacking, intermittent fasting,” Bell said.

“I love all that kind of stuff.”

Bell even revealed he was set to purchase a health retreat in Queensland.

“I'm going to completely modernise it, so it's going to be cutting edge science meets hippie.”

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