Misleading headline from Bloomberg. Makes it sound like Gen Z has gone off the rails.
In reality.. this was representative of a very small cohort of people.
Betterment asked young people who have an investment account, and a 401(k) didn't count, they threw those out.
In the Fed's 2025 household survey, 28% of 18- to 24-year-olds have a 401(k) or IRA.
Only 18% have stocks or funds sitting outside a retirement account.
So they started with the minority who already invest, then cut it again.
Among that group, 52% said they moved money meant for investing into sports betting last year. 26% said they treat betting as part of their long-term financial plan.
So this is not the kid who never started.
It's the kid who already opened an account on purpose, and is now treating a sportsbook like part of the plan.
Gen Z is moving money from stocks to sports betting in wealth plans, 52% of them have redirected inv funds to sports betting and quarter of them treat sports betting as a deliberate part of their long-term financial plan, according to survey from Betterment. Wow.
I hate to hear entrepreneurs talk themselves out of starting a company because they got bad investor feedback on their idea.
It's important to understand that:
(1) the vast majority of investors are bad at their job. they are bad at making money and predicting success. there is lots of publicly available data on fund performance that proves this.
(2) the vast majority of investors are very good at LOOKING like they are good at their job. they particularly love pontificating on LinkedIn and X. That is fundamentally different from actually being right.
My advice is:
(1) take the investor questions seriously - it's free analysis and market feedback. You need to have answers to questions to raise money.
(2) don't get discouraged by investors. things stack in unexpected ways.
For example, LLM wrappers looked like a losing bet to VCs a year ago because they couldn't fathom how LLMs wouldn't capture all the underlying value.
Now, it's clear that lots of value will be captured by Agents, which is just another name for an LLM wrapper. For an Agent to be successful in highly complex applications, you need multiple LLMs to power it for different parts of the use case and to drive reliability. That makes it impossible for one LLM company to capture 100% of the value. Now LLM wrappers are suddenly a winning bet to investors.
I could go on, but my basic point would be the same: investors tend to think of how your company will fail. You should think of one way your company could succeed.
If an enterprise product is easy to install, it is almost always very easy to uninstall. That's why I'm convinced that many of the AI companies that grew rapidly over the last 24 months will see insanely high churn over the next 24 months.
AI makes Trust the most valuable asset an organization can build with its audience.
By 2025, Tik Tok style algorithmic content will be considered default fake unless proven otherwise.
NEW: Twitter is cutting employee benefits starting this quarter. Commuter benefits, family planning, and meal allowances are all out. Coffee and snacks are staying, per an internal email.
goal setting secret: Say this to yourself 10x before starting: โthese goals are based on what I know today. Iโve oversimplified the problem, overestimated my abilities, assumed nothing goes wrong, and forgotten that I need time off. Ok here goes! Here are my goals:_______โ