“Making money is not like what I thought it would be. This business kills the part of life that is essential, the part that has nothing to do with business…
People want an authority to tell them how to value things, but they choose this authority not based on facts or results. They choose it because it seems authoritative and familiar.”
This quote comes from Michael Burry’s letter to his investors at the end of the movie The Big Short. It’s a great movie. And the book is even better.
We have been discussing a comprehensive approach to personal finance and investing over the past week and a half. I have tried to lay out a strategic investment plan that leads directly to financial security and ultimately financial independence.
I sat down to pen this entry with the hopes of putting it all together and painting the big picture for you… and the above quote kept popping up in my head. I think it’s exactly the message that so many of us need to hear.
When I took a job in the investment research field, my sole motivation was financial. I had largely squandered the money I earned working in corporate banking, my first career, and I was dead-set on making up for lost time.
So I put my head down and worked 10 hours a day during the week and at least 8 hours over the weekend. I didn’t take any days off – not even holidays, with the exception of Thanksgiving and Christmas.
I did this for years, and sure enough I became a fairly competent investment analyst and financial writer. I also started to build out a bulletproof portfolio and make some cash flow investments with a strategic investment plan – just as I’ve talked to you about over the past week.
As time went on, I was amazed at how my portfolio and my income ballooned.
It didn’t take long until I was at a point where I didn’t have to worry about money anymore. There’s such peace of mind that comes with knowing you have the resources to pay the bills and take care of your family no matter what may come your way.
However, I learned a hard lesson through this process. I didn’t need to focus solely on the financial side of things to achieve financial security. It doesn’t come from extreme hard work. It comes from having an investment plan and executing it consistently.
And you know what surprised me?
So many of my colleagues – skilled analysts in their own right – continued to chase piecemeal investments whenever the next new fad came along.
That is to say, they didn’t operate with a strategic investment plan in place. They were always on the look-out for the next big thing. Then they would have to track their investments religiously because they knew they needed to sell them before the tides turned.
I know this because they talked about it. They would get excited whenever they acted on a new opportunity.
And I pass no judgment on that. Maybe it has worked out well for them. I don’t know.
But what I do know is that approach requires you to focus so much of your time and energy on money. You have to constantly keep track of whether your investments are going up or down… and you’re constantly watching your account balance.
I say that from experience, because that’s exactly where I was once upon a time. But when you do that, it diminishes the part of life that has nothing to do with money. Even worse, the piecemeal approach doesn’t automatically create financial security for you.
Maybe you get your pick right and hit it big… but will you sell before the tide turns? And if you do, will you steward your earnings such that they grow and compound? Or will you take another shot on the next hot fad?
I’m just not interested in that game.
The investment approach that I advocate is dramatically different—because it doesn’t require us to fixate on money. Instead, it allows us to create an investment plan that will automatically build financial security for us over time. Meanwhile, we can focus on what truly matters in life.
We’re going to talk about this approach in more detail at our live event tomorrow: The Strategic Investor’s Playbook: Bulletproof Money, Consistent Cash Flow.
I’ll lay out exactly how to build out your personalized investment plan. And then we’ll look at several real-world examples to demonstrate exactly how you can start creating extra monthly income from your investments as well. That way you can free up your time and energy for those things that truly matter to you.
By the way, this apporach is largely age agnostic.
It can help those who are in the early and middle stages of their career build a Permanent Portfolio with a comprehensive investment plan. And for those who are later in their career or retired, this approach can help convert a nest egg into safe income for retirement.
Thanks very much to everyone who has registered for the event thus far. I’m humbled by the show of interest. And I promise we’re only going to discuss actionable ideas. You won’t get any fluff from me.
For those who haven’t registered yet, the event will start tomorrow (May 14) at 3:00 pm Eastern. The main presentation will run for an hour or so. Then we’ll open it up to Q&A.
And as I mentioned yesterday, it will be a real Q&A. All attendees will have the opportunity to submit questions anonymously. And we’ll address every question that comes in to the best of our ability. Nothing is off limits.
If you can join us, please register for the webinar at: https://phoenician-league.lpages.co/the-strategic-investors-playbook-webinar-registration/
See you tomorrow!