Disclaimer: this article below is the sixth article of my blog: The Love Investor. It describes exactly how I invest my money. No mainstream “money expert” would likely endorse this, and it might indeed not be for everyone, so take it with a healthy dose of skepticism, examination and judgment. Stock market is inherently risky. You are solely responsible for your financial gains and losses. In case you make a lot of money over the long term for you and your family, and you want to thank me, buy a copy of my book and give it to your loved one. They will appreciate you. So will my wife, agent and publisher.
In 2007, a book hit the shelves and stayed on the New York Times Best Sellers list for years. The book is The 4-Hour Workweek by Tim Ferriss. Behind the seemingly ridiculous title, several concepts struck a chord with its audience. One of them is outsourcing. Namely, time is a finite resource and shouldn’t be wasted on tasks and jobs you are not good at or passionate about. Those tasks should be outsourced to someone else who is good at them.
Over the years, this concept has been proven correct again and again in my career. Much of my joy and success has come from focusing my energy and creativity on my strength, and most of my pain is due to my inability to outsource tasks related to my weakness. When I didn’t outsource, I ended up hiring myself for free, doing work I hated, and boredom, tears, and failures often ensued.
When it comes to types of outsourcings, not all are created equal. You would hope to outsource it to someone who does the job better than you. For example, for your tax, you can do it yourself, but you can also hire an accountant hoping she can do it faster, more accurately, and while saving more on your taxes for you.
That said, it is very rare for a regular person to hire the best in the world to perform a service for him or her. But what if somehow you could hire Gordon Ramsey to be your daily chef (in a remote kitchen without ever talking to you if you don’t want to be in his face), Coldplay (or your favorite musician) to perform at your birthday parties, Morgan Freeman to read you bedtime stories, Liam Neeson to be your body guard, Macaulay Culkin to build your home security system, Lebron James to play pickup basketball with you, and Marie Kondo to tidy up your room? You might be able to do it, but it’s going to cost you a fortune because their time is very expensive. Unless you are the President or the Queen. In that case, you just lie there and celebrities would line up to serve you in exchange for your grace, favors, and association.
However, there is one area in life where the best of the best are at your fingertips to provide you services for free, and they will give all their heart and might in working for you – managing your money.
“Whoa whoa whoa,” you might be thinking, “aren’t you the Love Investor, the guy who tells us to invest our money in companies we love, and stay away from “money experts” whose incentives are tied to earning service fees or selling us financial products? Why all of a sudden are you advocating for us finding a money manager? And how is the Lebron James of money manager going to do it for free?”
Well, I didn’t say I outsource money management to Joe Schmoe financial advisor. I indeed stay away from them, and you should too. What I am advocating is that you can delegate the growth of your money to the best and brightest minds in business, the likes of Jeff Bezos, Tim Cook, Jack Dorsey, Elon Musk, Eric Yuan, and Bob Iger.
You can do it simply by investing in Amazon, Apple, Twitter/Square, Tesla, Zoom, and Disney.
Think about it, these are the richest people in the world. How did they become rich? Did they follow the opinion of the mainstream “money experts” to find a financial advisor to manage their money? Or did they put their savings in a bank, a “medium risk” 30-year fund, or an index fund? No. They became insanely rich because they had and held the stocks of the companies they founded or are currently running for a long time. These are the most brilliant leaders, so they continue to steer their companies to new heights by making the best products and providing the best services. As a result, every Amazon transaction ever made, every iPhone ever sold, every Twitter ad ever run, every Tesla car ever delivered, every Zoom subscription ever purchased, and every Disney World trip ever taken, these companies make more money, and these people’s stocks go higher, and so does their net worth.
Here is the thing, although you won’t become a billionaire, you can become a millionaire and achieve financial independence the same way! You don’t need to invent your own Amazon or Tesla, you can just buy their stocks and hold them for as long as you love them, with a click of a button on Fidelity!
When mainstream “money experts” talk to you about investing in stocks or mutual funds, they treat them as ticker symbols such as AMZN, GOOG, and MSFT. They would magically go up or down. If you can make the right decisions or simply get lucky, the tickers you bet your money on will go up. You will then sell to earn a profit. There is no connection between you and the ticker symbols.
When it comes to Love Investing, your mindset is completely different. When you buy and own Amazon stocks for the long-term, you become a shareholder and a minority owner of the company, and your incentives and Jeff Bezos’ incentives become aligned. Jeff Bezos has a lot of goals and dreams, including going to Mars with his company Blue Origin, but his main incentive while being the Executive Chairman of Amazon is to increase Amazon’s shareholder value for the long term. His personal wealth depends on it, his executives and employees depend on it, his shareholders (both large institutions and individuals like you and me) depend on it, and his personal space dream depends on it. You bet he will continue to use his brilliant mind to do what’s best for Amazon stocks in the long term.
In another word, you, as the minority owner of Amazon, literally hired Jeff Bezos and his amazing team for free to work as hard as possible to make you wealthy, because they want to be wealthy themselves. And you can say the same things for all the world-class leaders and companies you own stock of. Every time you watch your Love Portfolio, just imagine these leaders working with sweat and tears to make your portfolio grow, because that’s exactly what’s happening.
A regular person walking down the street would think she has a middle-of-the-road financial advisor handling her money, praying he doesn’t screw it up. Or she thinks she owns a mutual fund or index fund that hopefully will go up enough in time for her retirement.
A Love Investor walking down the same street knows she owns pieces of 30 best companies in the world and has hired the world’s smartest, most educated, resilient, innovative, and disciplined people working nonstop for her money.
That’s the power and magic of Love Investing – you invest in the companies you love for the long-term, and your portfolio will love you back over the long-term.
No, you still can’t delegate your daily cooking to Gordon Ramsey. But delegating money growth to Jeff Bezos and Elon Musk isn’t a bad option either.