Millionaire YouTuber Hank Green tells Gen Z to rethink their Tesla bets—and shares the portfolio changes he’s making to avoid AI-bubble fallout

This advice has paid off well for millions of investors: This year alone, the index is up about 16%, and its gains have averaged more than 20% over the past three years and about 14.6% over the past two decades. In most cases, investors trying to pick individual stocks like Tesla or Meta are easy to beat.

But at a time when Wall Street is worried about the possibility of an AI-driven bubble — with the voices of mega-investors Michael Burry and economist Mohamed El-Erian sounding the alarms — Green isn’t waiting to see what happens. He’s already rethinking how much of his wealth is tied to big tech companies.

The main reason: The S&P 500 is more focused than ever. The top 10 companies — including Nvidia, Apple, Microsoft, Amazon, Google, and Meta — make up nearly 40% of the entire index. And almost all of them are pouring billions into AI.

“I feel like my money is more at risk than I want to be,” Green said in a video with more than 1.6 million views. “I feel like with a lot of my money in the S&P 500, I’m now kind of betting on a big future for AI. And that’s definitely not the future I think is going to happen.”

So green is a hedge. He took 25% of the money he had previously invested in S&P 500 index funds — a large percentage for a self-made millionaire — and moved it into a more diversified set of assets, including:

• S&P 500 Value Index Fundswhich leans toward companies with lower valuations and less AI-based hype.
• Medium sized stockswhich he believes could benefit if small businesses get more AI productivity gains.
• International index fundsproviding exposure outside the high-tech US market.

Green’s premise is simple: Even if AI transforms the economy, the biggest winners in the end may not be the deep-pocketed companies building the models.

“I think these giant companies offering AI models will actually compete with each other for these customers in part by competing on price,” Green said. “This may mean that the value provided to small companies will be greater than the value provided to large AI companies. But who knows? I think this is something that could happen.”

And if his fears are exaggerated? He’s okay with that too.

“If I’m wrong, 75% of my money is still in the safe place everyone says your money should be, which is the S&P 500.”

YouTuber’s message to his Gen Z and Gen Alpha viewers: The stock market is not a ‘Ponzi scheme’

Generation Z continues to catch up with other generations in financial literacy, from saving and investing to understanding risk, according to TIAA. What’s more, one in four admit they’re not confident in their financial knowledge and skills — a stark admission considering that 1 in 7 Gen Z credit card users have maxed out their credit cards and that many young adults hold thousands in student loan debt.

As a “successful middle-aged 45-year-old,” Green said he tries to model what thoughtful, long-term decision-making looks like. Part of this effort includes dispelling a major misconception shared by some of his audience:

“I’ve been getting these comments from people like, ‘I can’t believe you’re participating in this Ponzi scheme,'” Green said. luck. “I want to isolate these people, because I don’t think the stock market is just a Ponzi scheme. I think it’s overvalued right now, but I think it’s tied to the real value that’s really been created in the world.”

His broader point: Investing isn’t about emotions or just throwing money into this week’s hot stocks; It is something to research seriously.

“A lot of people think investing is like getting a Robinhood account and buying a Tesla,” Green added. “And I say, ‘No, you should get a Fidelity account and buy a low-cost index fund for everyone or keep it in your 401K and let the people who manage it manage it’” — which a lot of people do, which is a good thing, too.

His younger viewers are taking notice. One popular comment summed it up like this: “As a young person entering a point in my life where I’m starting to think about investing, I really appreciate you talking through your logic and giving me a lot of disclaimers instead of telling me I have to buy buy buy buy exactly what you’re buying.” The comment has already received more than 4,700 likes.

Financial advisors agree that portfolio diversification is king

Although Green doesn’t come from a finance background, experts from the investment world said they largely agree with his reasoning: Having a diversified portfolio is the way to go — especially if you have concerns about an AI bubble.

“Unlike many dot-com companies, today’s tech giants generally have significant revenues, cash reserves, and well-established business models that go beyond just AI,” said certified financial planner Beau Hanson, host of Money man show,” he said in a video analyzing Greene’s opinion.

“However, concentration risk remains a real concern for investors seeking diversification. However, it is precisely for this reason that we advise against placing all investments in the S&P 500 Index only, especially if you have a shorter time horizon.”

Hanson added that wise investors spread their money across different asset classes, including small and international stocks and bonds, in order to reduce portfolio volatility and save money.

More consistent returns across different market environments.

This sentiment was echoed by Doug Orenstein, director of TIAA Wealth Management, who said it’s important to realize that not every investment needs to chase growth.

“Especially as you get older, ensuring income streams becomes critical. Products like annuities can provide reliable payments regardless of market fluctuations, creating a foundation for financial security,” Ornstein said. luck. “Think of it as building a floor under your investment portfolio — a floor that can’t be touched by market fluctuations.”