The stock markets surged to new highs in 2015 in large part because the Labor Department said the economy added 165,000 jobs in April, 15,000 more than consensus expectations. 15,000 is a rounding error in a nation of millions, but we’ll take it if we can see billions more wealth created!
In 2019, the S&P 500 closed up almost 30% for another record all-time high!
Just think about this situation for a little bit. Is it not a little bit ironic that more jobs creates more stock market wealth, but once you have lots of stock market wealth you no longer have to work? I’m reminded about the parable of the Mexican fisherman who gets ridiculed by an executive with a fancy MBA for why the fisherman doesn’t want more than his catch. The whole point about investing our money is so that our money will one day work so hard for us that we don’t have to.
FORGET ABOUT THE SAME
Here I am an unemployed guy looking for work as a masseuse’s guinea pig in Bora Bora and for what? To earn $25 an hour while getting rubbed down by some lovely lady on the beach after two hours of tennis and one hour of scuba diving? Forget that! What I should be doing is spending my hours trying to uncover potential multi-bagger investment opportunities that people have overlooked. My biggest regret when I was in my early 20s was not having enough money to invest in this one stock that exploded by 50X in a matter of months. I’ll tell you about this story in a future post.
Risk-on is risk-on. People overbid like crazy for things in a bull market. Bubbles will eventually form, but before the burst you can make a ton of money in the process. Everybody likes to talk about how dotcom millionaires went bust in 2000. I personally know a handful of dotcommers who did quite well. The same goes for real estate. We are talking millions of dollars in the bank before the age of 30. Not everybody got crushed like the media makes it out to be. Those who succeeded in cashing out have quietly gone about their ways.
From now on I will spend at least 15 minutes once a week looking for investment ideas, publicly traded or private. I’ll alternate the time for new online entrepreneurial ideas as well. I’m not going to over promise by saying 30 minutes or 1 hour because I know that won’t happen.
Most of us spend too little time using our imaginations. We wake up, brush our teeth, get dressed, go to work, come home, eat dinner, watch TV, poop, and repeat the cycle over and over again. Let’s make room for some meditation, some investment idea hunting, and some creativity. I bet if we set aside more time to think differently, we can do much more, be much more, and earn much more.
IDEAS TO PONDER
* Is there a product you swear by that you use all the time? Perhaps it’s a publicly traded stock you can look into.
* Is a company in a foreign country replicating the success of an established player? Samsung vs. Apple, Yandex vs. Google, Hyundai Motor vs. Honda, etc.
* Is there something you are particularly good at or fond of that you can leverage into something more?
* Is there a problem that bothers you where you see a solution?
* Do you see something mediocre which you can do better?
* Where is fear the greatest? Some of the greatest opportunities come out of darkness.
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Photo: A Mexican fisherman with a huge catch. 2020.