Hypothesis and Trends
I have the following hypothesis and trends:
1) First invest in myself.
– Education – books, understanding history, courses, coaches or anything that will help me learn more and be smarter
– Earning capacity
– Business – invest to grow future revenue. Think of my business like an investor.
– Relationships
– My own brand
Investing in myself is the first step because it will see the biggest returns, and it also doesn’t matter what happens to the market. Investing in yourself is the ultimate all weather strategy “nobody can take it away”.
This applies to my finances and also to time. A good book or a coach that could give me one good idea is often a better investment than stocks.
But investing in myself is not enough because I need to grow my wealth for maximum impact and security, to be able to control and navigate my future.
2) I am Investing Long Term:
I am investing for the long term and I am not interested in short term trades. This strategy has some advantages because it seems that much of the market is driven by short term incentives. Forever is my preferred holding time.
3) Technological Growth is Exponential
I believe that technology has the potential to completely transform our lives and I am ready to fully embrace that. I don’t think most people in the market really understand the implications of exponential technological growth.
4) Population is one of the most important factors on the economy.
There are three key global trends:
a) Aging populations
b) Lowering of birth rates as economies develop, and
c) Rapidly growing populations in Africa.
5) Creating Money Leads to Inflation
At the moment, US and West Europe are tending towards printing more money which ceteris paribus leads to inflation.
6) US is the world’s dominant currency and superpower. The world order will change.
The US is the world’s dominant currency and superpower and has been for 70 years. The world order will change, like it has in the past for all the other dominant countries. It might happen in my lifetime or not. It is important to be prepared in case it does. In a likely change of US being the dominant currency, it’s possible that cryptocurrencies could become more important.
Based on the above I have the following strategies:
Strategies
- Invest in myself first
- Research and understand how technology is developing.
- Learn from the greats.
- Earn money – the more I earn the more I can invest.
- Don’t leave cash idle – invest it, put it to work.
- Review investments regularly – pay attention to money to watch it grow.
- Buy T-bills which have a guaranteed rate of 5%.
- Listen to and follow what excites me.
- Understand companies deeply if investing. Do proper research, read annual reports, and calculate the value and hold forever.
- Invest in the market – dollar cost average investing in index funds consistently.
- Put a proportion in cryptocurrencies, but not too much.
- Diversify so I’m not reliant on the US – global markets, crypto, properties and gold.
- Aim to invest in countries with growing populations if possible: India, Africa.
