Peter Tuchman is quite familiar with Wall Street. For four decades, the silver-haired floor trader at the New York Stock Exchange has expertly navigated market crashes, bull runs, and all the fluctuations in between, earning him the moniker “Einstein of Wall Street” and the recognition of Being the most photographed trader on Wall Street. He's now offering guidance to the next generation: Avoid purchasing items that depreciate immediately upon acquisition and instead, invest in the businesses that produce them.
TL;DR
- "Einstein of Wall Street" Peter Tuchman advises investing in stocks, not depreciating "stuff."
- He suggests young investors buy shares in companies whose products they use daily.
- Tuchman highlights passive investing via index funds like the S&P 500 for long-term wealth.
“One of the most important things is to invest in stocks and not stuff,” Tuchman said in a video posted by The School of Hard Knocks, a TikTok channel with more than 5 million followers. “Pretty much most things we buy goes down in value the minute you buy it.”
Tuchman, who says he trades between half a billion and a billion dollars of stock daily, says young people are the “greatest consumer generation in the world,” pouring money into products that depreciate immediately Instead of assets that increase in value over time. What was his answer? Turn that knowledge into investment strategy.
“Go back to high school, walk down the corridor and look at what sneakers everyone’s wearing, what phones they use, what computers they’re on, what they do in their spare time, and what social media they’re on,” Tuchman Recommended. “Buy a little bit of each one of those companies.”
This strategy mirrors the renowned investor Peter Lynch’s philosophy of buying what you know, yet it's adapted for today's digitally fluent audience. Tuchman advises young individuals to consider investing in Apple, Nike, or other companies whose products they already use, rather than solely buying the newest iPhone or sneakers.
Tuchman also emphasized the effectiveness of passive investment strategies, particularly via index funds.
“There’s a number out there that says at the age of 18, if you put $250 a month into the S&P 500, which is a basket of 500 stocks, at the age of 60, you’ll have more than $1 million,” he said in the video.
The calculations are correct. Historical figures indicate that the S&P 500 has seen delivered an average annual return of about 10% since its beginning, and recent 30-year averages have been approximately 10.3%. Financial forecasts suggest investing $250 each month beginning at age 18 have the potential to exceed $1 million by the time you're 60, thanks to compound interest, provided that past market performance is replicated.
The concept of compound interest—earning returns on your returns—lies at the heart of Tuchman’s advice. “It’s letting your money work for you,” he said.
Peter Tuchman: Success Story
Tuchman began his career as a teletypist on the NYSE floor in May 23, 1985, eventually advancing to the role of broker by 1988. He weathered Black Monday in 1987, as well as the dot-com bubble burst, the 2008 financial crisis, and the COVID-19 pandemic, which nearly killed him in 2020 and left him with lingering health complications.
“I almost died of COVID,” Tuchman said in the TikTok. “I was given three months to live.”
Tuchman has also faced his own personal tragedies. In August 2023, his wife, documentary filmmaker Lise Zumwalt Tuchman, passed away from cancer. His brother Jeffrey, also a documentary filmmaker, died of cancer in 2017. Despite these losses, Tuchman continues trading and educating young investors, driven by a philosophy forged through adversity.
“I love what I do,” Tuchman told The School of Hard Knocks. I've no need to showcase myself with Bugattis and piles of cash. If I can share what I've discovered, I don't want to keep it to myself on a mountaintop.
His parting counsel? “Find something you love to do, get really good at it, and embrace the younger generation.”
The complete video with Tuchman is available for viewing below:
@theschoolofhardknocks The real WOLF OF WALL STREET 🤯 i interviewed @Einstein of Wall Street the longest standing trader and stockbroker in the history of the New York Stock Exchange and I asked him how he got RICH! I inquired about the most valuable financial guidance he'd impart to individuals globally. He explained how to identify promising companies for investment and strategies to maximize your financial returns. When asked for his top advice to younger people, he shared it. #wealth #entrepreneur #financialfreedom #motivation ♬ original sound – The School of Hard Knocks