Josh Brown reveals a 'little-known fact about American-style capitalism' that investors should be aware of.

• In early October, CNBC interviewed Josh Brown about his new book, "You Weren't Supposed To See That: Secrets Every Investor Should Know."
• He talks about his views on the American Dream, the Wall Street lie, and how financial planners opened his eyes.

Josh Brown initially believed that to become a financial advisor, one had to adhere to a specific appearance and conform to a certain standard.

Since becoming a CNBC contributor, Brown has discovered that there is more to many things in the world of finance than meets the eye.

In his new book, "You Weren't Supposed To See That: Secrets Every Investor Should Know," Brown advises investors to look beyond the surface level of financial advice found in traditional and social media. For instance, he uses the American Dream as an example.

According to Brown, CEO of Ritholtz Wealth Management, while we are all taught about the American Dream and its potential to benefit everyone, the pandemic has shown that it cannot work for everyone simultaneously.

"The secret to American-style capitalism is that when everyone is successful simultaneously, the system collapses. We need individuals to succeed, but we also require those who are still striving to achieve, who are willing to accept jobs and perform tasks that others refuse."

In early October, CNBC interviewed Brown about his experience as a financial advisor and his top advice for investors of all ages.

This interview has been edited and condensed for clarity.

'One of the biggest lies on Wall Street'

Ana Teresa Solá: What led you to write this book?

For approximately 15 years, I wrote a blog called The Reformed Broker, posting seven days a week at one point. However, as my career progressed, the pace of my writing began to slow down.

Last year, I decided to end it and say, "This is the limit I can take this." However, I didn't want to leave it without a proper farewell because it played a significant role in my life.

CNBC's top financial advisor advises against timing the market, while highlighting firms that help clients with competing goals. Some investors can capitalize on "capital gain harvest" to avoid mutual fund payouts.

After investing a significant amount of time and effort into writing, one may feel the urge to acknowledge the importance of the insights gained and the significance of the topic at hand.

I aimed to compile those insights into a book, revisit some of the most significant ones, and update them to provide current relevance and benefit to readers.

Throughout the book, you emphasize the notion that achieving success in the stock market requires some consequences.

The common misconception on Wall Street is that investors can avoid risk while still benefiting from the upside of various asset classes and market trends. However, this notion will always be a lie because it is the simplest thing to sell.

Even intellectually secure individuals who comprehend logic can still be swayed by the desire for it.

As a salesperson, you learn to identify your audience and their triggers, and then manipulate them.

We have excelled in our content as a company by highlighting the ways in which people are influenced to make certain decisions, and the role of human nature in this process. It is crucial to combat these instincts, whether driven by fear or greed, as market trends unfold.

You want to strike a balance between taking enough risk to make money and not taking too much risk that you're at risk of failure.

Financial advice industry 'has come a long way'

The financial advisor's technique did not meet your expectations when you walked into her office, as described in the book.

Over a decade ago, I experienced a moment of realization that made me feel more confident about transitioning from a retail stockbroker to an investment advisor.

It was my belief that all investment advisors were serious, professional individuals who knew their stuff, but I discovered that many of them were just pretending.

Since then, the industry has advanced significantly, with advisors being more professionalized and better equipped to handle clients.

I don't think you could fool people anymore, as many advisors now operate on a fiduciary standard.

What is the missing expertise that young advisors lack compared to previous generations?

Many financial planning advisors are struggling to keep up with the new generation of highly skilled financial planners who are emerging from college with a wealth of knowledge at the age of 23.

In my view, I believe that people will become angry upon hearing this, but what they fail to comprehend is the capacity to transform potential clients into genuine relationships.

They haven't had as much face-to-face experience as previous generations, and they haven't dealt with as much rejection as Gen X or the boomers.

We should provide them with opportunities to have face-to-face interactions during important meetings, as they are highly skilled.

My generation and older possess the skills of selling, persuading, making people feel comfortable, and handling awkward social situations.

'Gen Z doesn't need financial planning advice'

How do you perceive Gen Z's approach to financial advice?

Gen Z doesn't require financial planning advice as they lack the assets to accumulate and there are no estate or tax issues to discuss.

The algorithm on TikTok will provide users with the most outrageous content, including shortcuts, facts, tricks, and stories about people making wild, Bonanza size trades.

The majority of the advice being given is being delivered by unqualified individuals who are not registered and have no obligation to adhere to any standards, allowing them to say whatever they want.

As with previous generations, the complexity of life for the current one will increase, leading to a rise in responsibility and financial dealings. In response, they will seek assistance.

And they'll start their search online.