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- Wise Relationship Investments
You won’t lose if you keep investing in the American stock market.
Yes, that is the summary of my financial education. Reading Forbes, Buffett, and the Economist along with listening to CNBC, Dave Ramsey, and The Motley Fools taught me that one thing about money.
Historical returns of 8% on an annual basis make a few dollars grow into a lot of dollars when invested over a lifetime.
I think most humans believe investing in relationships brings positive returns over a lifetime. We take part in friendships, marriages, families, and a host of religious, sporting, and community groups. Even those who trod in the shadows of humanity usually walk with other people.
How are you investing in your friendships to make a compoundingling™️(yeah, I’m going to trademark that one!) best friendship?
Have Enough Income—You cannot invest without a surplus. Make relationships and personal margins in your life to give time and money to build friendships.
Always Invest Something—Some of us are fortunate to have met our “Winner” best friends early in life. You know, the friendships where both people have an easy time going all-in. Most of us need to invest pieces of ourselves with a few friends and slowly grow solid friendships. In either case, not investing in friendship will eventually get you Zero Return.
Invest Your Best Self—Marriage and dating books go on and on and on about giving your best to your mate. Your best friends also deserve your best self. Friendship is also about giving, listening, caring, and loving another person. Those actions require your best thinking, feeling, and attention. Use fake capital and you will become bankrupt—just like in real life.
Spread The Risk—Warren Buffet and Charlie Munger have shown us the power of committing to great companies over a long period of time. However, Berkshire-Hathaway has a full portfolio of companies. Great investors pick winners. Yes, that is winnerS plural. Pick a set of good friends with whom you share your life.