Actions speak louder than words

Navigating the Anxiety of Today's World and Investing in a Transformative Era

We are living in a time filled with a multitude of anxiety-inducing factors. Stressors outside of the workplace—economic uncertainty, political instability, and societal change—are shaping how we approach life and our finances. In a world where the idea of making money seems increasingly accessible, many people are seeking high-risk financial instruments that promise enormous profits. These investments, while potentially lucrative, can also be highly volatile, creating fortunes for some and destroying wealth for others.

One of the biggest challenges with these high-risk instruments is that their intrinsic value is nearly impossible to calculate. They tend to be speculative, rather than based on solid, measurable fundamentals. A recent example of this occurred during Donald Trump's reelection campaign, where optimism about his potential impact led some to push certain investments to price increases of over 60% in just a month—only for those same prices to fall by more than 10% in less than two weeks.

The Case for Owning Shares in Well-Managed Companies

In contrast to embracing speculative strategies, there is significant potential in owning shares of well-managed, publicly traded companies. Many people mistakenly believe that buying stocks is just as speculative as investing in the high-risk instruments mentioned earlier. I strongly disagree. When you buy shares in a public company, you are essentially purchasing its tangible assets—machinery, real estate, inventory—as well as its intangible assets, such as intellectual property, investments, and loan interests.

The speculative aspect of valuing a company is primarily tied to its future potential, which, of course, is impossible to predict with certainty. No one can forecast what tomorrow will bring, not even for themselves. However, the key advantage of owning shares in a public company is that you can mitigate risk to some extent. By analyzing the company's fundamentals and calculating risk, you can create a margin of safety that allows you to prepare for worst-case scenarios.

Risk Management and the Role of Protocols

As an avid risk-taker, I understand that unmeasurable risk is not something I am willing to accept. Risk can never be fully eliminated, but it can be managed. That’s why it’s crucial to stay alert and prepared to act if the risk management protocols you’ve put in place fail. These protocols should be continuously refined and adjusted to the ever-changing external environment in which businesses operate. A disciplined approach to risk can protect your principal and ensure long-term success

Empowering Others to Take Action

The reason I created this platform is to help people understand that they don’t need to be afraid of exposing their hard-earned money to investments they can track and manage. By understanding the risks involved and knowing how to measure them, investors can make informed decisions without risking they hard-earning money. My goal is not to make people dependent on this blog, but to empower them to take action and think critically about their financial choices. Please note that the content here is purely my opinion and is not intended as financial advice.