Stop Worrying and Start Investing
Updated: Apr 5
That's a pretty big generic general topic.
it's true it is. However…
Anything that stops people from sound investment decisions needs to be talked about here.
Oh, the next thing you know, you'll start talking about the knowing, doing gap again.
Have you ever heard of Wallace Wattles?
Who? The How to Succeed In Business Guy? Big on customer service?
Wallace B. Wattles. We reviewed two of his three most famous books as earlier episodes in this podcast.
Yep, those are episodes 27 and 28, For those who want to go back and listen.
So the three books are The Science of Getting Rich, The Science of Being Well, and The Science of Being Great. Most famous is The Science of Getting Rich, in Chapter 11. Wattles says something incredibly powerful about investment choices which is related to this whole concept of hesitating to invest.
Which is what Simple Success plans are all about!
In that chapter of that book, Wattles says:
“There is no time but now.
There will never be any time but now.”
Are you saying that there’s no reason to start something? Or stop something?
No, DT. It’s just that we all play a trick on ourselves, telling ourselves that we’re just going to get more information like is really popular with vaccines and other essential services.
But that might be a good choice for some people.
It might, I’ll agree. It just probably isn’t.
Like sometimes social media isn't.
Isn't always a good choice.
Because it's hard to disconnect?
That and it's hard not to panic when things are going badly.
Oh, you mean like with the Wall Street Journal exposé of Facebook?
Not the expose itself.
People’s reactions. You know, those basic impediments.
Well, we could just do what we do now anyway…
We pretend that we can put a fox in charge of the henhouse…
Oh, and bad things won’t happen!
The investing parallel being that although people are arguing about the use of algorithms by tech companies, the real issue is that we demand performance and then are surprised when someone goes to extra lengths to get it.
And there’s the whole thing about algorithms too.
What whole thing?
Oh, I get it, you’re telling me I’m complaining about a problem that people don’t know they have.
Algorithms are just fancy IF/THEN statements.
Oh, like IF there is too much sun, THEN put up an umbrella.
Yes, at its most basic.
So, what’s the problem?
The problem is that people focus on the name, and "algorithm" is a complex name for an easy idea.
It’s like the Matrix.
Yeah! (Laughs). Focus on something being hard, and guess what? It will be hard. Experienced investors know this.
Know what you’re thinking.
Yes, DT! And like a bumper sticker I saw a few years back, “Don’t Believe Everything You Think”.
Everything you think. Yes, that can be a weakness of the human mind.
It’s not like we’re still surrounded by saber-toothed tigers and really need that fight or flight thing going.
That was important, John.
It was very important, then, that’s true. But it's not like we have to treat our emergency fund like that today. It’s possible to go into a decision from a positive viewpoint.
And with a bias towards action.
You mean we’re going to change our default mode of action?
If our default is to not act, then yes, absolutely.
Throw all caution to the wind, then.
Not that exactly. We do need to pay attention. We just don’t want to get locked down or locked in by so much deciding that we’re never acting.
I think we should keep some powder dry. Split things up.
You mean save some of the fun we’re having?
Yes, at least until after this break.
During which I will dream a dream about our company plan, and about how we all contribute toward the success that we will have by following these ideas and adopting them.
Are you saying that there is no such thing as an opportune time?
No, DT. I am not saying that.
Then what are you saying?
I'm talking about the radical idea...
The radical idea that...
There need not be such a thing as an opportune time.
No such thing?
Not if you're regular.
That's not something I really want to visualize.
Why? This isn’t…oh, OK, DT, just remember, visualization is so important.
Either go on with your story or get out of my sight! Thou dost infect my eyes.
Right, Richard the 3rd.
So where were we?
Oh yeah, regular savings.
Here's a little audio clip about that very thing.
YRTBR 16 02
Who was that?
That was Napoleon Hill himself. From sometime in the 1950s. Teaching a class in Chicago somewhere.
Wow! Talk about time capsules. And he was talking about regular savings?
Sure sounded like it to me.
And I'm guessing patience works its way in here too, right?
It certainly does. Funny you should mention that.
I took a recent look at the price of Tesla stock.
Of course you did.
Well, I'm always going to recommend that people look at their own holdings.
But this is especially interesting because of the two views.
Yes. One being the short-term view, which in this case was a month long. And it showed that while Tesla stock was up a little bit over the entire month, it took a huge downward ride about halfway through the month, which is justifiably scary.
OK, so where is this going?
Where this is going is fundamental ideas, like the patient view, the longer view.
Now we're looking at. Tesla stock price. As before. But this time. Not just for the past month,but for its entire life.
Which is what...about 10 years?
Yep, that's about right. So, what we see in the longer picture is that the stock price was flat for about the first eight of those ten years. Then suddenly it's done the proverbial hockey stick thing.
It's a lot like the stock market as a whole.
How do you mean?
When people ask me if it's the right time to invest. They want to maximize their financial future, as they should. Quickest answer is to show them a picture of the stock market for roughly the past 40 years, 'cause it looks sort of like the Tesla stock for the past, oh, 8 to 10 years.
Flat, flat, flat, flat, flat. Then upward in a Powerful. Whoosh.
Well, that certainly takes all the fear out of it.
Yes, and that's on purpose. Let's take another quick listen to Napoleon Hill. Talking about the freedom of not being afraid.
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And in line with that, I’m not afraid of breaks!
Anymore, you mean.
So how we going to wrap this episode up? Or is that just an absurd question?
One real quick story first, DT.
OK, real quick.
It's about Tesla again.
It’s on the topic of not worrying…
OK, keep it short still.
Got it, here goes:
I bought TSLA, that’s the Tesla stock, at $200 per share. Now, I missed the first 3 or 4 price surges, but here’s the key:
where’s the key?
I thought you wanted to keep it short.
Let me guess. You didn't let that stop you.
Right. I didn't let that stop me. Hundreds of thousands of wild horses couldn't have kept me away.
I guess that was a good thing.
I’ll say. It soared from $200 to $2000, then split 5:1 to $400, and has since…
What did those pictures show?
Gone to $737 per share.
That means you’ve nearly…
Yep! Quadrupled my money. I wish I’d bought more!
Yet of course, I know better. I know not to bitch because I could have done better.
Since bitching doesn't solve your problem.
No, it doesn't. In fact, it actually creates the problem.
So how about if we just skip that?
Works for me.
Let’s focus on goals for a second, and really hone in on part of a story told by Earl Nightingale.
Who’s that? One of your inspirational guys?
Yes, among other things. Many other things.
So, he tells the story of a guy who was hunting tigers. He fired at one but missed. The tiger was thrown off stride by the shot and missed his return leap. Well, the man goes back to camp and practices aiming short distances.
Then when he goes back to find the tiger, he sees it practicing short leaps. They were both practicing the things they needed to be better at.
Which tells us what? Practice is the smartest investment?
Sort of. It tells us everything we need to know about goals. And practice. You have to set them. And do them.
Actually, you have to decide to have them and set them before you need them. And you have to practice so that they become automatic so that they become habits.
Is this something you do for real?
It is, DT. In fact, I invest $385.00 EVERY SINGLE WEEK into one of five different platforms for an expected $20,000.00 of investment every year.
And I’ll go even further, right here, right now.
I can't wait.
Me neither, so here goes. I will, by the end of 2022, be investing 10 times that.
$3,850.00 EVERY SINGLE WEEK?
Yep, DT. I’ll be able to say that I invest $3,850.00 EVERY SINGLE WEEK into one of those platforms for an expected $200,000.00 of investment per year. And I’m going on the record with that here and now.
This is what all of our listeners should do.
Yep. Get down in the dirt with the real thing. And let others spin platitudes. Like how markets
What's wrong with that?
Markets aren't people so markets can't be worried. But that's just a rant of mine. Let's move on.
My thoughts exactly.
And when we move on.
We can think.
And not just think ANY think.
No! We focus on the crucial question. We think with more mental space…
So, we can remember better.
Which means better practice.
YOU’LL GET GOOD!
¡Gracias por escuchar! ¡A la prochaine!