Gary Vaynerchuk provides playbook on how to improve investment outcomes

Gary Vaynerchuk, VaynerMedia CEO, joins Yahoo Finance to discuss how investors can gain back losses from tech sell-off, what is driving the surge in investing increase, and what to know about the Clubhouse app.

Video Transcript

BRIAN SOZZI: GameStop mania is taking a breather for a bit but remains top of mind among traders and those active on social media. Let's gauge what may happen next with all this with VaynerMedia CEO, Gary Vaynerchuk. Gary, always good to speak with you here.

I was thinking last night coming into this segment that a lot of people have been hurt financially from the sell-offs in a GameStop off the high, sell-offs in Bitcoin, you name it. How could they come back financially, and even emotionally, from suffering those type of losses?

GARY VAYNERCHUK: I mean, it all comes down to the individual situation. What you hope, Brian-- unfortunately, I've heard many stories of the opposite, is that some people took out loans to buy GameStop, because they got excited in the moment. And so you know, I think the Bitcoin sell-offs are minor. I mean, where Bitcoin is right now in comparison-- you're talking about normality.

I think the GameStop situation was so unique in so many different ways. And how they come back financially and emotionally is going to come down to who they are as a human being. I think the same person that is under-educated and just rides a wave on emotion and hype may be in a vulnerable spot to deal with the downside of that. Others took calculated risks. My hope is that they see the big picture and don't value of money enough, and are able to move on because they're happy as a human, not worried about an extra dollar in their bank account.

BRIAN SOZZI: Gary, is there a playbook that they can follow, like three steps to help improve this or improve their outcomes?

GARY VAYNERCHUK: Step one, know what you're doing with your money. There's a lot of places where I've been offered incredible opportunities, it seemed, on paper, but I just genuinely didn't fully understand it.

You have a ton of people right now putting money into the public market, putting money into cryptos, putting money into startups. And really, they're chasing. They're chasing the momentum of the conversation that the media outlets are talking about, that social media is talking about, that forums are talking about, communities are talking about.

Number one, two, and three is be educated. Know what you're doing with your money. There's incredible opportunity in front of us. I mean, this program is going to be talking about NFTs at an insanely high level. The problem is, 96% of NFT projects are going to be financial losers. So get educated, and then attack.

MYLES UDLAND: Gary, I want to ask you about NFTs. But I'll ask that next. I want to start, though, with-- so here at Yahoo Finance, we talk about stocks all the time. To me, the market seems like the most important thing in the world. But it's not.

I'm curious, from your vantage point, how you feel like the zeitgeist-- it feels to me like everyone now wants to talk stocks. Everyone wants to talk about markets. Does it seem that way to you? And what do you think's behind that energy?

GARY VAYNERCHUK: I think entrepreneurship had a 10-year, incredible run. And we just saw a ton around entrepreneurship, entrepreneurship, entrepreneurship. So then you had the Robinhood effect, where you just had an enormous amount of very young human beings jumping into the dynamics.

You know, you go high school today, and more boys and girls want to be entrepreneurs or influencers that monetize off brand deals or start their own products than anything else in the world-- not rap stars, not athletes. So capitalism, in a 3.0 world of this new individuality capability because of devices like this, have created a really interesting variable.

So you're right, a lot of people have gotten into the market. But that same energy is also in drop shipping, starting a Shopify store, buying crypto, NFT, investing. Entrepreneurship, thus investing, has taken over an entire generation.

MYLES UDLAND: Yeah, it feels like business is the new sports or whatever, however you want to frame that kind of thing.

GARY VAYNERCHUK: 100%, because the cost of entry is so low. And the problem is, too many people aren't self-aware and don't realize they're not entrepreneurs or investors. And unfortunately, they're going to have to learn that lesson, because the market is unemotional. And it's going to do what it wants to do, whether you're a billionaire who's upset about Reddit or whether you're a kid that gets caught in an exciting moment but then gets slammed.

The market is the market is the market. It has no emotions. It is not picking sides. And people will win and lose on the truth of the end consumer's actions.

MYLES UDLAND: So speaking of sports, let's talk about NFTs. Tell me what I need to know about Top Shot and just what is going on there. Because I'm only 30, but I feel like a Boomer when I look at some of this stuff.

GARY VAYNERCHUK: You know what's so funny? A lot of people are trying to connect their Coinbase to their MetaMask right now, and they're like scared. And I keep making fun of them, because I'm like, you made fun of your parents for not wanting to put a credit card into a website nine years ago, and now you're the Boomer.

There's a lot going on in NFTs. The digitalization of everything in our society, social currency-- the reason people care about a blue check on Instagram is the same reason this is going to be huge. IP is going to see an incredible amount of dollars. Artists, both digital artists and music artists, are going to find a platform that is going to allow them to monetize without people sitting in the middle taking a piece of the cut.

This is going to be an incredibly big revolution. And NBA Top Shot is an incredibly big platform, because NBA IP is so hot. Sports cards have been so hot. NFT is getting hot. So that was a perfect storm. Big shoutout to those individuals.

You've got Sorare, which I wrote a tiny $25,000 check into. But I bought more in the actual soccer cards there. I think you're going to see a lot about Sorare talking about giving football's, AKA soccer's, global footprint.

And then you've got the overall NFT market, which is just about to-- and I wasn't kidding. This program is going to spend an enormous amount of time this summer, fall, and winter talking NFT.

MYLES UDLAND: Let's talk also a little bit about Clubhouse and what you see happening there, and just maybe where that fits into. I mean, the NFT concept of, I can monetize myself more efficiently, makes something like Clubhouse, as far as I see it, more attractive for the high-school kid who wants to build a brand, be an entrepreneur easily. How do you kind of see the Clubhouse thing playing out?

GARY VAYNERCHUK: Clubhouse is an interesting double-edged sword on what you just said. You can easily build a huge brand on TikTok or YouTube. But that's content that you post-produce. I think you can build an enormous reputation, a huge brand on Clubhouse. Here's the problem. You have to know what you're talking about.

I actually see a lot of people that have had decent social media brands getting exposed on Clubhouse for not actually knowing their expertise. And so it may seem like they're doing well, because they have a lot of people in the rooms. But meanwhile, behind the scenes, the A players, the real players are chirping about, wait a minute, they don't really know the subject matter. Because you can't hide in a live audio environment.

So I think Clubhouse is an incredible place to grow your brand and to have things happen. I also think it's an incredible place to lose brand reality, because there's more truth in it than your post-produced piece of content that maybe somebody else helped you make.

BRIAN SOZZI: Well said. All right, let's leave it there. VaynerMedia CEO Gary Vaynerchuk, always good to see you. Stay safe. We'll talk to you soon.

GARY VAYNERCHUK: Cheers.