Entrepreneur, investor, speaker and author Jordan Belfort is known as The Wolf of Wall Street, the title of his best-selling book and film of the same name. The film covered many aspects of his life, including his experience with penny stocks.
An exclusive interview with Benzinga reveals Belfort's thoughts on the film, the cryptocurrency industry, the rise of retail investors and his new book.
Belfort's The Wolf of Wall Street: A film based on Belfort's memoir The Wolf of Wall Street was released in 2013. The film is directed by legendary director Martin Scorsese and stars Leonardo DiCaprio, Jonah Hill and Margot Robbie.
Belfort said the film accurately depicted many parts of his life, but noted that one element was inaccurate.
“The idea that we were trying to make people lose money was very wrong,” Belfort told Benzinga CEO Jason Raznick on an episode of The Raz Report. “It wasn't an idea at all.”
Belfort said his approach is to sell large stocks to his clients first and then move into speculative stocks, but the goal is to never lose his clients' money. If you lose a customer's money, you have to find new money, Belfort said.
Another inaccurate element that Belfort would have liked to have changed from the film was the scene in which he punches his wife in the stomach, which never happened, according to the activist.
Belfort initially said he wasn't bothered by the scene because he knew it wasn't true and the film crew asked him for permission.
“It has poetic license,” Belfort said of making the film.
Aside from these two elements, Belfort said the film was very detailed and reflected the brutality, drugs and fun of his life. “It was fun, there's no denying that.”
The film grossed $116.9 million domestically and $392 million worldwide and was nominated for five Academy Awards.
Related Link: Exclusive: Wall Street Monster Jordan Belfort Says He's Right About Cryptocurrency Is A Scam, But Bitcoin Is Different
Belfort Cryptocurrency: Belfort once called cryptocurrency a scam and has since backtracked. While Payfort admitted that many cryptocurrencies are scams, they were wrong about Bitcoin BTC/USD and possibly Ethereum ETH/USD .
The investor said that some people are turning to the cryptocurrency sector from Wall Street in hopes of reducing corruption, but that is not the case.
“The common denominator is people,” Belfort said. “Anytime you get people involved in this, it's a scam.”
Belfort said the cryptocurrency industry needs regulation.
The author and entrepreneur recalls seeing huge amounts of money destroyed by cryptocurrencies for investors. “I think I was mostly right.”
As for Bitcoin, Belfort said he was wrong and that the cryptocurrency is "a really beautiful thing."
NFTs were another item that Belfort described as a scam and said he had avoided starting his own collection despite numerous offers that could have netted him millions of dollars.
“I don't see how this won't end up being a complete disaster.”
Belfort said he has lost money in several altcoins and now the only ones he owns are Bitcoin and Ethereum. “I have also been dealing with Bitcoin for a long time.”
Belfort said he doesn't think Bitcoin trading makes sense, but it can be a good investment as a small percentage of an overall investment portfolio.
“I think bitcoin will rise in the long term.”
Belfort on Retail Traders: Belfort was asked how things have changed for investors over the last 20 years and how retail traders have gotten smarter today.
He doesn't say today's retailers are necessarily smarter, but they "certainly have better tools" and have access to more information.
“I wouldn't say smarter, but more knowledgeable,” Belfort said.
The author adds that the gap among investment bankers has been bridged. “This becomes the opportunity to close the game.”
Belfort's new book: After several books, including a memoir that was made into a hit movie, Belfort has another book.
The “Investment Wizard” will be released in October, and Belfort said it will include tips and tools for investors.
“What I'm really talking about is that it's OK to speculate on anything if it's a very small portion of your investment portfolio,” Belfort said.
He added that investors can invest in penny stocks and make money in some cases, but in most cases they will lose. “This is speculation, not an investment.”
Investors should put most of their money in an S&P 500 index fund, Belfort said: “The majority of your money should be here.”
Another element that Beaufort included in his book is the Wall Street complex that keeps traders and the money market industry alive.
He said passive investments outperform active investments over time. “I hope it's a book worth reading.”
Watch Belfort's full interview on The Raz Report below.
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Hear from cryptocurrency traders and experts on the future trend and how Bitcoin use cases have evolved over the years. Benzinga's 2023 Future of Crypto Expo is coming to New York on November 14, 2023. Get your tickets today!
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