James Altucher, a hedge fund manager, author, and founder of Stockpickr, explained in an interview on Yahoo’s tech ticker that young people should invest in themselves and start companies, rather than invest in the stock market. 

Click here to read the complete article:  http://yhoo.it/9s8HMY or watch the interview above.

Here are some of his main points:

• Even if the market roars, an investor can only make so much with only $20,000. Even in a strong bull market, they can make 20% to 30% a year, which is insignificant to a young person.

• Putting money in the market means living with uncertainty. Young people do not want to deal with that kind of stress.

• Someone in their twenties should focus on their education and other investments that will advance their career. Altucher suggests taking classes, brainstorming ideas, starting a website and attending networking events.

• It is also not a bad idea to have $20,000 cash in the bank. It can provide a safety net and peace of mind during a time when many are losing their jobs.

Altucher warns that not every business or idea will work out, but says if you invest in yourself and are persistent, you will eventually find success.

“Take $20,000 and put $5,000 per four ideas exploring them. Something is going to hit. You are going to learn something. The benefits are going to be, not just 20% per year, but 1,000%, 10,000%, 20,000% a year.”