The best investment advice often involves the combination of the following steps: (1) acquire a specialized skill so that your labor generates meaningful money; (2) save some portion of your labor as surplus; (3) take that surplus and invest it into assets that grow in value over time; (4) maintain cash so you will never be forced to make decisions on disadvantageous terms during times when you are vulnerable; and (5) do not react stupidly to the inevitable moments when assets you own fall in value.
1. Recognize that the the value of your labor relates to your ability to acquire specialized skills that can be integrated into tasks. The harder the task, the more remunerative the reward is.
One of the most influential moments of my life occurred when I met a man who spent his life cleaning up the property after a hoarder property owner had died. He … Read the rest of this article!
Every now and then, I like to write “big picture” posts that put my finance articles into the proper perspective of the overall whole. Today, I wanted to talk about the five sources of power that you can acquire while you are here on this earth, and the more of each that you possess, the more others will seek out your presence and companionship:
(1) Skill Set/Economic Power—When Warren Buffett gave a young man at the 2008 Berkshire Hathaway shareholders meeting the standard advice “to invest in yourself”, he elaborated by mentioning that certain skill sets will always command a higher premium in the marketplace, regardless of the country in which you live. The example Buffett used is that a heart surgeon will always make more money than a janitor (regardless of whether you live in 1800s Germany, 1920s Japan, 1950s Great Britain, 1970s Ireland, 1990s Mexico, or 2010s … Read the rest of this article!