The Stacking Benjamins Show Private Equity for Regular People: Higher Returns or a Very Expensive Lesson? SB1813
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Mar 9, 2026 Doug, Joe's mom's neighbor and frequent contributor who brings trivia and perspective, joins the conversation. They dig into why private equity and private credit are being sold to everyday investors now. Short, punchy takes cover illiquidity traps, who gets targeted by aggressive marketing, regulatory and Ponzi risks, and what practical steps to consider before chasing exclusive-sounding deals.
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Private Bets Require Much Bigger Wins
- Private equity and similar private bets are binary: they either fail (zero) or must dramatically outperform public markets to justify the risk.
- OG contrasts risk-free Treasuries (~4%) and S&P historical returns (~10%) with private deals that must often 2x–10x to be worth it.
1% Can Absorb Many Failures Retail Can't
- The wealthy can make many private bets because losses are a small fraction of their net worth; retail investors usually cannot replicate that diversification.
- OG and Joe note VCs historically need many bets to find one home run, which retail capital can't sustain.
Illiquidity Is A Real Opportunity Cost
- Illiquidity is a hidden cost: even a correct private investment can trap capital until a future liquidity event.
- Joe and OG warn you may not be able to withdraw funds when you need them, undermining goals like college timing.
