A little appreciation each year multiplied by many years can produce enormous wealth. Some real estate entrepreneurs have succeeded because they bought in their 20s and 30s and are still alive in their 80s. After that, it's easy. His point, corrected somewhat for inflation, is that you can't invest if you can't save. Listen to others, decide for yourself.
Risk is real.
Not every investment pays off, and some are absolute flops. But tomorrow is another day. Contracts and lawyers are nice, but your word is what counts and the only way to establish long-term business relationships. Never take the last penny from the table. When the another person prospers, you prosper.