Should You Still Trust US Stocks? + Leaving Corporate America in Your 20s

Scott Galloway weighs in on whether long-term investors should diversify beyond US equities, makes the case for buying a boomer-owned small business over staying in corporate America, and revisits his predictions from The Four a decade later. Want to be featured in a future episode? Send a voice recording to [email protected], or drop your question in the r/ScottGalloway subreddit. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00Speaker 00

  Here's your report.

• 0:01Speaker 01

  Oh, thanks, Jane. I wish I could hire someone just like you.

• 0:04Speaker 00

  Try LinkedIn Hiring Pro. It's more than a job board. It's like the recruiter you always wished you had. Hiring Pro uses real-time insights to match your role to LinkedIn's unique network of professionals and delivers a shortlist of best-fit candidates. You'll spend less time sorting applicants and more time talking to the right people.

• 0:20Speaker 01

  Let's do it. You're irreplaceable, Jane, but another you would be great.

• 0:24Speaker 00

  Hire right the first time. Post your job for free on LinkedIn today at LinkedIn.com/quality.

• 0:31Speaker 02

  This episode is brought to you by Michelob Ultra. Good times mean competitions between you and your friends, like seeing who can throw some pigskin the farthest or rush the field the fastest. Winner gets an ultra. Because it's not just a superior-like beer, it's also giving fans superior access to their favorite sporting events. Superior is worth playing for. Visit michelobultra.com/superioraccess to enter. Enjoy responsibly. Copyright 2026 Anheuser-Busch InBev Michelob Ultra Beer, St. Louis, Missouri.

• 1:01Speaker 03

  This episode is brought to you by Welch's Fruit Snacks. Back-to-school season can be tough on parents. But choosing a snack you and your kids can both get behind doesn't have to be. Stock up on Welch's Fruit Snacks, made with whole fruit and now made with no artificial dyes. It's a snack kids already love and one you can feel good about giving them. Go back to school with Welch's Fruit Snacks. Now made with no artificial dyes.

• 1:34Scott Galloway?

  Welcome to Office Hours with Prof G. This is the part of the show where we answer questions about business, big tech, entrepreneurship, and whatever else is on your mind. Anyways, or anyway, excuse me, anyway, that's right. Chelsea Handler gave me shit for saying anyways all the time, so anyway. If you'd like to submit a question for next time, you can send a voice recording to officehourswithprofjmedia.com. Again, that's officehourswithprofjmedia.com. Or post your questions on the Scott Galloway subreddit, and we just might feature it in our next episode. I don't go to the subreddit. Sometimes they say mean things about me, and it hurts my feelings. It hurts my feelings. Anyways, our first question comes from John from the UK. John says, "Dear Scott, love the podcast." Thanks, John. "My question is on the investment time horizon.

• 2:16Scott Galloway?

  I've heard your recent comments on investing in US equities versus international equities and the relative returns 2026 year-to-date for each." If we're looking at a time horizon of decades, in my case, two-plus decades, does that change your view? For such a long time horizon, do you still recommend low-cost index funds? If so, US Focus or others? Thanks.

• 2:36Scott Galloway?

  Okay, so the question, does a 20-year-plus time horizon change the case for US Focus versus globally diversified low-cost index funds? If you look at the past few decades, what you see is that leadership is cyclical, not permanent, and that is the US-dominated markets are global markets for the past 15 years. But international equities led for much of the 70s, 80s, and again through the 2000s. So it is cyclical. From 2010 to 2024, US equities outperformed in 12 of the 15 calendar years, the longest such streak in recorded history. But since 1975, the average outperformance cycle has just been eight years. So we went, we have basically a 15- or 17-year winning streak, which was twice as long as most, most winning streaks in terms of regions.

• 3:21Scott Galloway?

  The current US cycle has already run, as we said, about 15 years as of late 2025. If you were to bet exclusively on the US over the next 20 years, you're effectively betting on that the longest cycle in history just keeps going. There's been, and that doesn't typically happen, there's been a recent reversal in 2025, international equities gained 31% in dollar terms, outperforming US stocks by about 15 percentage points, the biggest margin since 1993. So here's what the forecasters are saying. Vanguard projects US stocks returning just 4% to 5% annually over the next five to 10 years, almost entirely driven by stretched large-cap tech valuations, and Vanguard's model gives a 70% probability that international stocks outperform the US over the next decade.

• 4:06Scott Galloway?

  Fidelity projects US equities returning 3.2% over the next 20 years, roughly a third of the real returns delivered since 2005. In terms of valuation, or how I like to look at stuff, over half of the international sector trades at or below their 20-year median forward P/E, so they're still a relatively decent value, and every single US sector trades above it. Japan looked unstoppable in the 80s before entering multiple decades of underperformance, so it's a cautionary tale for assuming any market stays dominant. You know, past performance is no guarantee of future performance, as they say. So what's the answer?

• 4:44Scott Galloway?

  In my view, if you have a 20 or plus horizon, the key is to be diversified. You don't need to find the needle in the haystack, just buy the whole haystack. I would buy US equities, but I would also diversify costs, asset classes, not only equities but bonds, and I would also diversify geographically. Now, with a 20-year time horizon and being young, quite frankly, you can be a little bit more aggressive. So if you're going to invest in a European fund, a Vanguard European, it might be European growth. I think you could probably, if you were looking at fixed income, look at some more exotic stuff like distressed equity or a PE fund. I think you can be a little bit more risk aggressive. If you, it sounds like you're a young man. If you're my age, you want to start to scale down your risk and really diversify. When you're your age,

• 5:29Scott Galloway?

  you can be a little bit more concentrated, but I would still go across different asset classes and different regions, but be a little bit more aggressive in terms of the type of fund. And you can endure volatility. You can invest in funds and invest in private markets. And you could even perhaps invest in some things that aren't as liquid. Because you have, you want to play to your strengths. Time horizon, so you can withstand volatility. You absolutely want to do low-cost funds. And you could probably get into some alternatives, whether it's private equity or funds raising money for venture capital at a low fee, because you can absorb some of the risks that older people can't absorb. But again, what's the key? Diversification. If you're just an SPY, you're not that diversified,

• 6:13Scott Galloway?

  because 40% of your investment is just in 10 companies, which dominate the indices right now. And you also want to be diversified geographically. And then you want to pick good funds, very low cost, and quite frankly, not look at them for a long time. Because not only is it an investment of capital, of financial capital, it's an investment of your time. And so you want to find good funds you feel good about and then not have to invest your time looking at your phone or wondering what's going on. You also may want to take 10, 20% of it and have some fun and pick stocks, individual stocks that you think might outperform. It's fun, you'll learn a lot, you track them, and occasionally you get lucky. Thanks for the question.

• 6:54Scott Galloway?

  Question number two comes from Thomas who emailed us. Hi Scott, first of all, I wanted to thank you for the great work that you do. Thank you, Thomas. You and I have similar backgrounds. I was also raised by a single mom and I too found my way into investment banking. I'm currently in my mid twenties and working municipal bonds. And while this has been financially rewarding, I'm sick of working in corporate America. I have an uncle who has sold a couple of businesses to private equity firms and we've tossed around the idea of starting a business, but I don't have many skills outside of what you learn on the job in IB. I can grind, can do detailed financial analysis and can put together and deliver a great investor presentation. He's getting older and I know that I would kick myself if I didn't take the opportunity to learn from him as an operator. My question is, if you were my age today, what industry would you try to break into? If you had the time and willingness to work 80 plus hours per week?

• 7:40Scott Galloway?

  Okay, so first off, don't sell yourself short. You and I have very similar backgrounds. I was in municipal finance of the fixed income department at Morgan Stanley. So we're doing the same thing. And you learn attention to detail, rigor, analytics. By virtue of the fact you're at an investment bank, which are very selective, it means you have really strong skills and you would probably make a very good entrepreneur and a good operator. What field do you go into, quite frankly, is opportunistic? What fields do you have contacts in? What fields is your uncle interested in or already in? So if I said, yeah, in a vacuum, I would go into the intersection between AI and healthcare. But I don't know if you have any interest in healthcare or skills around AI or the

• 8:23Scott Galloway?

  ability to raise capital, which a business like that probably requires. Or if your uncle is in the curtain hanging business and already has a business with six vans and you're going to take it over and do apply, put your shoulder down and and grow that business. There is a big opportunity in the following. And that is if you have a little bit of capital going and buying a business, baby boomers, we're seeing just an enormous wave of retirements. Of baby boomers, many of whom own small businesses, right? A landscaping business, auto repair business, a company that installs appliances. There's all of these little businesses everywhere. And generally speaking, a lot of these companies, a lot of these people, because of lower birth rates, don't have many kids to take over the business

• 9:08Scott Galloway?

  or the kids don't want to take over the business, right? You know, because what dad does is lame. Or they just, they just don't have anyone to take over the business. So you can show up a lot of times and buy a nice little small business and get seller financing. In other words, I own, let's just go with the curtain company, the curtain hanging company. I just spent a bunch of money hanging curtains and it was worth it. I love curtains. Who would have known? Who would have known I would just be just down and crazy? I just go bonkers with a good curtain. I absolutely love them. I think they're so elegant. I think they're so sublime. I think they say a lot about me, right? Anyway, love curtains. So this guy, I spent a lot of money on this guy.

• 9:51Scott Galloway?

  And he was complaining that he didn't have, that his kids aren't interested in his business. And I think he makes a very good living. And if you approach someone and say, all right, I want to buy your business. I need one year for you to stick around to train me. And then I'm going to give you some cash upfront, but I'm going to give you a royalty or a tail for the next three, five, 10 years of X percent of the top line such that you have a retirement. So you basically buy the business and they finance it, if you will. There's a ton of opportunity in small businesses. So having said that, maybe your uncle's already in a certain business, maybe you have a vision for something. But this is opportunistic. Meet with your uncle on a regular basis. Try and find something and then start it and see what happens.

• 10:36Scott Galloway?

  And if it's not working after two or three years, don't beat yourself up. Go on to the next thing because, you know, small business is hard. But also, as a former investment banker in fixed income, I found a lot of my skills in training. It was more about an approach to work, attention to detail and the willingness to work really hard and get along with others that makes for a good entrepreneur. So you have outstanding skills to be an entrepreneur. Best of luck to you. Thanks for the question. We'll be right back after a quick break.

• 11:11Scott Galloway?

  Support for the show comes from Superhuman. The pace of modern work can be relentless. You're getting a constant influx of messages from a ton of different apps. You haven't closed all your browser tabs in a year. Everything seems urgent and staying on top of it all feels like an impossible task. Superhuman Go is an AI chat that's always there when you need it, already aware of what you're doing and doesn't ask you to start from zero. Superhuman Go, from the makers of Grammarly, help you be the best version of yourself at work. It handles the repetitive stuff so you can focus on the work that only you can do. Whether you need to summarize an endless email thread or prep for a meeting that's happening in five minutes, Superhuman Go works inside the tools and sites you already use, your browser, inbox, docs, and your project tools. And its AI chat is available on the side of your browser and it's always ready.

• 11:56Scott Galloway?

  No new tabs, no switching apps, no losing your place. This is AI that works with you, not on top of you, so that you have the time and brain space to solve the problems that matter. Check it out, find out more, it's superhuman.com.

• 12:14Scott Galloway?

  Support for the show comes from Vanta. As AI adoption grows, so does your company's security risks and requirements. New frameworks, audits, and vendors keep piling on, but your team isn't getting any bigger. Most compliance tools promise automation, but you're really stuck doing all the work by hand, chasing screenshots, validating controls, and playing catch-up when audit season comes around again. Vanta works differently. Their Agentic Trust platform is built to scale with you, not slow you down. With over 1,400 automated tests across 400-plus integrations, Vanta collects evidence and monitors your controls year-round, cutting your audit prep by 82%. Plus, you can access the Vanta agent everywhere you work, whether your team is in Vanta every day or living in tools including Claude or Cursor. Want proof?

• 12:59Scott Galloway?

  Over 16,000 fast-growing companies like Ramp, Ryder, and Harvey save time and resources while scaling fast with Vanta. Learn more at vanta.com/provg and get $1,000 off. That's spelled V-A-N-T-A dot com slash profg for $1,000 off.

• 13:20Scott Galloway?

  Support for the show comes from Vanta. As AI adoption grows, so does your company's security risks and requirements. New frameworks, audits, and vendors keep piling on, but your team isn't getting any bigger. Most compliance tools promise automation, but you're really stuck doing all the work by hand, chasing screenshots, validating controls, and playing catch-up when audit season comes around again. Vanta works differently. The regentic trust platform is built to scale with you, not slow you down. With over 1,400 automated tests across 400-plus integrations, Vanta collects evidence and monitors your controls year-round, cutting your audit prep by 82%. Plus, you can access the Vanta agent everywhere you work, whether your team is in Vanta every day or living in tools including Claude or Cursor. Want proof?

• 14:05Scott Galloway?

  Over 16,000 fast-growing companies like Ramp, Ryder, and Harvey save time and resources while scaling fast with Vanta. Learn more at vanta.com/profg and get $1,000 off. That's spelled V-A-N-T-A dot com slash profg for $1,000 off.

• 14:29Scott Galloway?

  Welcome back. Question number three comes from ThePieIsALI on Reddit. Hi, Scott. I've been following you since your book, The Four, which I found to be an incredibly insightful take on the success of big tech in our world. Thanks. By the way, I wrote that 10 years ago. My question is 10 years later. Well, there you go. How do you think your analogies and predictions have held up? Is there anything you would update, given today's reality? Hmm. So, when I first started writing the book in 2015, it was basically a love letter. I mean, people don't remember, in 2015, we were trying to figure out if it was going to be Jeff Bezos or Sheryl Sandberg that were going to be president. By the way, Sheryl Sandberg was supposedly going to be the VP for Secretary Clinton

• 15:09Scott Galloway?

  and/or the Treasury Secretary, or Bloomberg's VP and her Treasury Secretary, and people were trying to get Jeff Bezos to run for president. And, boy, has the worm turned. And my book was basically a love letter. I'd made a lot of money investing in these companies. I was fascinated by them. By the time I got to chapters three and four and did a lot of research and talked to a lot of people in the industry, it turned into a cautionary tale. And that is, I thought something was wrong here. And I'm not going to be humble here. The book was prescient. I said, "Don't be fooled," and this is, again, 10 years ago, "there's something wrong in Mudville, that there's Meta does not have her best interests at heart." Amazon is using predatory pricing to basically put other small retailers out of

• 15:50Scott Galloway?

  business, consolidate the market. Their fulfillment costs went from 16% of the purchase to about, I don't know, something like 40. So the play is consolidate the market and then increase, increase fees on your third-party retailers. So the core idea of the four was that the biggest tech companies who won because, essentially, they won because they tapped into basic instincts. And that was, uh, Google was knowledge and answers. When you pray, what are you doing? You're sending a query into the cosmos, hoping that some divine entity with greater processing power than you will hear your prayer and then spit back an answer you can trust. That's Google. Your most personal items, your most

• 16:31Scott Galloway?

  serious queries, you type into Google, now maybe into Claude or, or ChatGPT, and you trust it more than your boss, mentor, girlfriend. You take your most serious questions to this new god, and that's our brain. Facebook or Meta was the heart. We want connections. We want to be loved. We want affirmation. We don't want to be shamed. Apple was the genitals, and that is status. If you have an iPhone, it's basically the most elegant kind of, I don't know, non-obvious or subtle way of saying, uh, I am wealthy, I am creative, you should have sex with me. Only a billion iPhone contract holders, and those are the billion wealthiest people on the planet. If you don't have an iPhone, you're kind

• 17:15Scott Galloway?

  of sending a signal to the world that things haven't worked out the way you'd hoped, if you will, and that you, your gene, the branch of your gene pool should be, uh, should come to an end. And then finally, Amazon is the stomach, and that is, uh, my dog, no matter what time it is, will just pretty much eat until we take the food away. Because Dogs grew up with the experience on the savanna that there was never enough food. So they want to just gorge. And we have a consumption mindset where we have an inability to let, or our instincts haven't cut up to institutional production. So we gorge on fatty foods, on gambling, on porn. These are things we can't, on feeling good, on alcohol.

• 18:00Scott Galloway?

  We can't, when they're put in front of us, no one is telling us, wait, you don't need to eat everything on your plate because guess what? You're going to have cheap calories in the morning. That's what GLP-1s do and why they're so transformative in my mind. It's going to be bigger than AI is it essentially a scaffolding on our instincts that brings our instincts up to date. But Amazon adopted the strategy of Walmart, of Dell and of China. And that is the ultimate business strategy is more for less. And they were able to attract such cheap capital because Bezos is such a visionary and such a great communicator that they were able to basically give you a dollar worth of goods for 90 cents for a good 10, 15 years and then consolidate the market and then slowly but surely start raising prices.

• 18:45Scott Galloway?

  But their scale, their operational excellence just gives you a dollar worth of stuff for less than anybody else, or almost less than everybody else usually. Yeah. And that is, that taps directly into our consumptive instinct, full stop. So these companies, I thought, if you want to build a trillion dollar market cap company, I think the first question you got to answer is, is what instinct is this calling on? What is it about kind of our primitive past that it makes it obvious what this company is doing? Also, the book was more about a fear around a lack of regulatory frameworks and the idolatry

• 19:27Scott Galloway?

  of these companies because they were making so much money was wallpapering over some very troubling signals even back then in terms of radicalization of young men, putting smaller businesses out of business, tax avoidance, what Apple was doing with these double dutch strategies and basically fooling government into thinking, no, no, no, don't regulate us, we're your winners. And so essentially, section 230 passed in 1997 gave these companies free license to grow, totally unfettered, right? No regulation exempt from the same regulation that a newspaper is subject to because quote unquote, they were on Nissan platforms 29 years ago. Things have changed dramatically.

• 20:06Scott Galloway?

  And also, so in sum, I think I wasn't harsh enough. I didn't, I kind of missed how incredibly damaging it was going to be to our youth, the weaponization of our elections or the weaponization of these platforms by bad actors. I think when we look back on this era, we're going to regret the coursing of our discourse, the consolidation of industries and income inequality. But I think the thing we're going to regret the most is, well, two things. One, how did we let this happen to our kids? And two, the shaping, I don't think people really come to grips with how much

• 20:45Scott Galloway?

  we are subject to mind control or opinion control because of bots, sometimes sponsored by bad actors or the loudest minority, if you will, that shape or shame our views and shape the narrative. I'm subject to it. If I say something and a hundred bots or people weigh in and say, Scott, you're tone deaf, just like an old white guy to say, I'm less reticent to say it again. So we have, unfortunately, a series of unknowns and bots and the most extreme on either side shaping our narrative, which has resulted in polarization and inability to get on. This is the least productive Congress in history. Is some of that incompetence of our elected representatives, maybe. But I think most of it is our fault.

• 21:30Scott Galloway?

  And that is, we've all decided we hate each other and that the enemy is an income inequality or climate change or Russians pouring over the border in Ukraine, that the enemy is the guy, the neighbor down the street was, a political sign that we don't like. So I think things have gotten worse. I think that it was a cautionary tale and I think we got more right than wrong. And I wish I'd been a little bit, I wish I'd spent more time talking about the impact on kids and how it shapes our views on politics. And I also wish I'd spent more time looking at the CCP and the GRU's impact. Anyways, I might, who knows, maybe I should do an update and call it, you know, the five or I guess it's the 10 now. Things have changed a little bit. Big tech's more dominant, AI.

• 22:13Scott Galloway?

  Is making the biggest companies stronger, not weaker. Tech companies now look more like infrastructure than apps. Yeah, governments are starting to wake up and regulate them. It took us about, if you think about externalities, it usually takes 20 to 30 years for the public to weigh in. It took 30 years in tobacco, it took 20 years in opiates, and it looks like it's going to take 20 years in social media. Social went on mobile in 2013, and I imagine by 2033, we'll have pushed back. What's interesting is Microsoft really held on and became much more important due to AI and cloud computing. The new player on the stage, I would argue, is Nvidia, and became one of the most powerful companies in the world because AI depends on chips and compute. And also, I think people recognize that social media has kind of shifted from friend to foe,

• 22:58Scott Galloway?

  specifically from friend networks to algorithm-driven platforms, including TikTok, that do not have our best interests at heart, and elevate content that is incendiary or more conspiracy-minded because it's more novel, creates conflict, more ads for Nissan, more shareholder value. The original book was more about consumer psychology and platform dominance. Today, the story is increasingly about AI, infrastructure, and compute. Thanks for the question. That's all for this episode. If you'd like to submit a question, please email a voice recording to [email protected]. Again, that's [email protected]. Or if you prefer to ask on Reddit, just post your question on the Scott Galloway subreddit,

• 23:41Scott Galloway?

  and we might feature it in an upcoming episode. This episode was produced by Jennifer Sanchez and Laura Janer. Kami Rika is our social producer, Brad Williams is our editor, and Drew Burrows is our technical director. Thank you for listening to the PropG Pod from PropG Media.

• 24:04Speaker 05

  Now at Kroger, your points add up to more ways to save every trip. Use them your way to take dollars off groceries at checkout or save at the pump. You can even save up to $35 on your next fill-up. Same points, more choices. And with low prices on fresh, quality food, plus digital and personalized offers tailored to how you shop, your dollar goes further. Redeem your points online or in the app. Kroger, fresh for everyone. Restrictions apply. See site or store for details.

• 24:35Speaker 06

  Booking.com is the easiest way. From a day surrounded by noise...

• 24:47Speaker 06

  ...to a stay... ...surrounded by nature.

• 24:54Speaker 06

  That's nice. Go on, book it. It's easy. Booking.com. Booking dot... yeah.

• 25:04Speaker 07

  Close your eyes. Exhale. Feel your body relax. And let go of whatever you're carrying today.

• 25:11Speaker 08

  Well, I'm letting go of the worry that I wouldn't get my new contacts in time for this class. I got them delivered free from 1-800-CONTACTS. Oh my gosh, they're so fast.

• 25:20Speaker 07

  And breathe.

• 25:21Speaker 08

  Oh, sorry. I almost couldn't breathe when I saw the discount they gave me on my first order. Oh, sorry. Namaste.

• 25:28Speaker 07

  Visit 1-800-CONTACTS.com today to save on your first order. 1-800-CONTACTS.