jeudi 13 août 2020

Slow and steady

Here I am: 41 years old and at a point where I could leave my job for something else, drop my income by 50% and live relatively well (I couldn't travel as much as today and I couldn't have that much latitude, but I could be OK and my savings would be OK for the future). 

You probably know it: there's a lot of ways to invest on the market. There's also some different ways to get richer on the market. But there isn't that much ways to get rich in my opinion. Because the gambler way isn't viable on the long term and the cyclical way always hits a wall. 

I think that my way is a good way to get richer. In my humble opinion, buying 20-25 great companies that are a bit expensive but that have proven that they were very solid will help you to beat the market. You won't make 50% during a specific year, but if the market does 10%, you'll probably do 12-15%, if you picked well. 

Why playing with your money? You've worked hard for that money. You've made sacrifices for that money (you didn't buy a porsche... you saved your money and ate carrots). This isn't a casino or a poker game. 

What's the goal? Getting rich as soon as possible or getting richer slowly but surely? By slowly, I don't mean starting to invest at 18 and being rich at 80. I mean doing about 12-15% per year. 

When you aim too high, worries are not too far. You take more risks, you don't sleep well. You think too much about your investmens. 

To me, a portfolio is a partner. It will follow you all your life and you have the entire control on it, contrary to most of the things in your life. You don't even have the control on your health. You have even less control on people around you. 

And when life gets tougher with you, your portfolio is a comforting aspect of your life. And the future, on that aspect, looks bright. Even if you have 3 fucking months to live. Well... I don't know. 

I won't leave my job tomorrow. Actually, I plan to work at least until I'm 50 and keep my good income until then. But I may get another crazy boss one day or another and my plan might change. Who knows? One thing is sure, I won't work for 20 more years. The maximum I see is 55 years old. 

Anyone's got a philosophy different than that? You won't convince me to change mine, but you can share it in the comment section.  

7 commentaires:

  1. https://www.businessinsider.com/warren-buffett-sells-jpmorgan-wells-fargo-buys-barrick-gold-2020-8

    Have you noticed ?
    I dont remember seeing warren buffet including gold stock in his portfolio ever...

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  2. I read years ago in the Seth material that we as individuals create our own reality. Intellectually I didn’t really comprehend what that meant but on an intuitive level I felt it was true. I guess I was around my early thirties when I first read that.

    At my present age of 66 and after reading all of Neville Goddard’s writings among other things, I realize that this is the truth that every body is stumbling around for…In other words we create are own reality. Your world around you is one with yourself. Why?...Because we all have an ‘awareness of being’ and that awareness of being is God or the Godhead. Some people call this presence Allah, Jehovah, the Great Spirit and even the Eternal parent…Doesn’t matter what you call it. We are here on this schoolhouse called Earth to learn how to create. We do this by the way we think and the way we feel about things.

    Quantum physics has taught us that everything is energy including material objects as well as your thoughts. The physical world we live in is being created by an invisible world of thought-forms. This is how the Eternal parent created things and that is what we are here to learn.

    Just my opinion of course but because it’s my opinion it’s what I believe…

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  3. Lovely. To enrich those returns just a little, you can trade in tax sheltered accounts amoung 20+ long term holdings when the market tees up easy pitches for you. This will take annual returns to 13% - 18% avg.

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  4. Réponses
    1. https://m.facebook.com/pymcsween/photos/a.1953378378265630/2726489170954543/?type=3&source=57

      Liberty 45!

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  5. The 10-20% a year only works well if you already have a chunk of money or if you earn a high enough salary every year. If I was in your situation I would likely choose the same path. If a person hates going to their job then they might be more inclined to gamble more. I was 35 years old when I quit my menial average-paying job not intending to ever work full time again. Ya, I know, I'm a loser. Putting most of my savings in marijuana stocks in 2015 seemed to be a rational decision based on the circumstances. Now that I have something to lose, I have lost most of my balls and own a schmuck portfolio. I bought Tesla at $240 and Square at $35. I couldn't hold on to them which seems irrational knowing that I had 6 digits in marijuana stocks for 3 years.

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  6. Regular compounding works the best over many years.

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