Why Invest Forever? (Part 7)

Key Points

  • The rich continue to get richer, where the top 26 richest humans now control more wealth than the bottom 50%, based upon recent research from Oxfam.
  • Wealth has the capacity to grow exponentially after reaching a tipping-point, which can lead to a strong concentration of wealth among a small percentage of owners.
  • If you can’t beat ’em, join ’em.

Continue reading “Why Invest Forever? (Part 7)”

Why Invest Forever? (Part 6)

Key Points

  • Assuming a 7.2% annualized real return (including reinvested dividends), an investment will double in value about every 10 years following the rule of 72.
  • Given this rate of return, $1 can grow to $1000 after 100 years and $1 million after 200 years.
  • After enough gains in capital, incremental income can be consumed on a go-forward basis (practically indefinitely), without eroding the capital base (note: restrictions apply).

Continue reading “Why Invest Forever? (Part 6)”

The World’s Most Expensive Hobby (Part 1)

Key Points

  • Hobbies can provide lasting benefit by allowing individuals to refocus their efforts away from their careers towards alternative forms of enjoyment.
  • Nevertheless, active investing as a hobby might not be the best use of one’s free time.
  • Not only are the chances of adding value from this endeavour very slim, but also, the costs associated with investing unwisely can profoundly impact one’s long-term goals and aspirations.
  • As an example, most investors often overlook opportunity cost when making investment decisions even though this particular expense can be significant.

Continue reading “The World’s Most Expensive Hobby (Part 1)”