- 1 A Global Market Place
- 1.1 Start with yourself.
- 1.2 Good investors are long term investors.
- 1.3 You will be forced to make compromises.
- 1.4 The hierarchy of needs.
- 1.5 Be practical.
- 1.6 Wrapping it up.
- 2 What do you want your economic legacy to be?
Solar, media, cryptocurrencies, medical marijuana, tech, real estate.
Even the limited aforementioned list leaves out so many choices and evaluating them can be overwhelming.
A Global Market Place
What is the global market place look like? How are the economies of different regions, countries and major industries doing?
Marco. Global trends and forces. This will tell you about the marketplace you will be working in.
The Global Corporation
Think of it like a company with many divisions.
Our planet is in essence a global company. Our board of directors include nature, governments, capital, values and people – or any global force.
Our goal is to move forward as a species.
If you don’t think so then you have not yet found a part of you that has that hope.
Wouldn’t it be nice if the world were better?
Let me try to do something to make it better.
That’s my value.
It’s important because it should guide your investment strategy.
What do you value?
How do you see the world?
Start with yourself.
It will help you get in touch with your own biases. Understanding you could be perceiving the world incorrectly.
We are all biased, heavily. Through our genetics, our upbringing, our environment, health, circumstances and social status.
Assume you are coming in with some bias. Understand it. You can then chose to continue with it or not.
Many people are correct about their biases because they have developed them through trial and error. However, always remember you could be wrong.
Where do you see the future of the world going? That’s investing.
Investors are forward thinkers. They recognize global trends and forces and move their money around accordingly.
The biggest secret between you and Warren Buffet is he recognizes global trends and forces and predicts their direction with accuracy over time.
He then uses that date to find investment opportunities in those sectors, evaluates the key players and places his investment.
Good investors are long term investors.
If a trend is only likely to continue you invest in that.
You find the best investment opportunities in that sector and pick a few of the top ones.
This is what I refer to as a diversified sector portfolio strategy. You pick key sectors and make diversified investments in it.
This is not about day trading and making a quick buck. This is about a sustainable long term investment strategy.
Watch those industries.
There’s only a few ones you really need to pay attention to.
Research and invest accordingly.
Monitor your investments and make movements when you see forces shift.
Now you know my philosophy as an investor.
I invest based on my values. Where do I see and want the future is how I invest.
It’s about putting your money where your mouth is.
You will be forced to make compromises.
Compromises are part of progress.
What do I mean?
It means that by recognizing how things are currently, you may have to invest in sectors that you do not morally agree with but you still evaluate as profitable.
This is where you have to make a moral choice. This is the problem with moral choices, you may not agree with them but you benefit from them.
So you weigh out how much do I want the benefit more than morality. It is ultimately a choice between “who I wish I was” and “who I am”.
It’s OK to chose who I am because sometimes you need to recognize the circumstances you are in and who you are.
Does a small business owner with $500 savings each month invest all his money in a start up? No. It’s a risky investment.
Does a person with a personal net worth of $1,000,000 and an average savings of $4000 a month, invest $25,000 in a start up. Maybe. It’s at least less of a risk.
It’s all about risk analysis. If you can accurately predict risk then you can make better decisions about the future. This applies to much more than just investing.
The better you are at assessing risk, the better investments you will make.
Don’t invest with your heart 100% of the time. Sometimes you need to invest in what makes sense. Always keep a portion of your portfolio in ideas you believe in. You must always remember your values and try to keep those as strong as possible.
Your mother died of an untreatable medical condition? – any medical condition that results in death is treatable. Invest in a company that wants to solve that problem.
There is money in a cure.
My point is that I want you to imagine the future, what should or would you want it to be like and invest accordingly.
Why is this important?
We need to encourage a diverse range of ideas in order to select the best ones.
We need as many visions of the future as possible.
The best and most common ones will win.
A culture that promotes free expression and ideas is one where humans evolve.
We must evolve.
We must always evolve.
This is the point of it all.
We are not special.
We are a single person on a small planet in an infinite galaxy.
We exist for a fraction of a microsecond in cosmic time.
Our lives essentially are meaningless in the grand scale.
Individually yes. Collectively no.
The hierarchy of needs.
So if your life is meaningless without the collective – what do you do?
You support the collective.
The collective is the human race.
You secure your own position in life, you help others and you breed.
But. This is the big but (and I cannot lie). If you want to influence the course and the direction of our species, you become a leader to guide it there.
There is no better way to lead than with your wallet.
When you are trying to secure yourself in this world invest smart, tactical.
When you are in a good position, you devote more of your portfolio to your value investments.
Of course your value investments should see profits but you also need to be realistic about when you want to realize those benefits.
Wrapping it up.
How much have we covered here?
How does this all come together?
I don’t know.
I just do what works for me and that should be your attitude.
Do what works for you, until it doesn’t.
Reward your own good behavior and punish your bad behavior – economically speaking.
You know what the right economic decisions are to make in your life no matter what level you are playing.
Know how you value money.
We don’t talk about this enough as a society. How we value money. What does money, wealth, capital mean to us?
I think about it.
Part of me wants to renounce the world and live in the wilderness as a stoic.
Maybe I will… One day.
I am not there yet economically speaking.
- Think of your economic goals. What are they?
- Set your children up for a better life?
- Further a cause?
- Enjoy and consume?
What do you want your economic legacy to be?
That’s how I invest. How do you invest?
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