As promised, we continue to pour over many newsletters (almost all of them free) in an effort to grasp the thinking of the counter-mob. The mob follows the trends, often to their own destruction. And the pull of the mob is almost irresistible. It draws us like a siren call, desiring to suck the life out of us. After all, if everyone is doing it, who are we to refute the masses? How incredibly arrogant to think that you, one in several thousand, are right when all the rest of them are wrong!
Well, that’s the thing, isn’t it? The truth is not determined by masses. It’s not discerned by numbers. It’s not evaluated by consensus. The truth stands alone. It needs no support, for it’s support is found in the root of its own verity. While it can be painted over so as to be unrecognizable, at least for a season, it cannot be destroyed. It yet stands, regardless of the forces arrayed against it.
Our financial decisions have largely become focused on speculative efforts to get rich quick. Lottery tickets are considered by some (who are very bad at math) to be an investment. They really think that they’ll win eventually simply because a few do. We read about FOREX traders (some could be traitors) who will help you amass fortunes if you’ll let them manage your “investments” (some are very good and responsible). Others tout options as the means to quick wealth. And, it’s true, some people do very well at this. But most of us don’t have the knowledge, experience and emotional control to succeed at these sorts of ventures.
So, which are you? Are you a gambler, throwing money at the chance you might get a whole lot in exchange for a very little? Perhaps you’re a speculator? In some sense, most of us are. And their may be certain speculative interests that we consider worth the effort. Some see options this way. Some see semi-numismatic coins with higher premiums this way. But, central to whether or not we’re speculative is our knowledge and understanding. Are you throwing money at it just hoping to make the great gains promised as possible by some self-proclaimed guru? Or, are you studying the opportunity before you so that you understand the risks involved and have weighted them against the reality of the opportunity? The former is mere gambling, the latter is speculation and relates itself more closely to true investing.
At this point I’d like to introduce you to Steve Sjuggerud, editor of Daily Wealth. Steve can help you learn more about what investing really looks like. He does his homework in order to understand the fundamentals of the companies he suggests, looking for historical integrity, current strength and forward vision. Rather than just looking at the performance of the stock or the amount of the dividends, he strives to understand the truth in regard to the company. He’s not looking to get rich quick. He’s looking for consistency, perseverance and longevity. P/E ratios, balance sheets, true value (vs. perceived or leveraged) and treatment of share holders all come into play in his evaluations. This results in a steady increase of wealth with few spikes and valleys. Of course, nobody’s perfect. But I appreciate Steve’s approach. He teaches us what a true investment is all about. It’s about understanding what you’re doing. It’s about taking as little risk as possible for as much gain as possible. And he highlights these thoughts in today’s edition of Daily Wealth. As always, do your own due diligence. Understanding is key to investing.
Central to our pursuit of truth and understanding is something much more important than our portfolios. It’s a good thing, because Another Joe’s financial portfolio is nothing to brag about. But our spiritual portfolios have much greater ramifications. Our financial portfolios affect our comfort level during our lifetime on earth. But our spiritual gambling, speculations and investments affect us for eternity. Which do you think is more important? What are you investing in the most? As stated earlier, the truth is unwavering. It stands alone. Jesus stated, “I am the way, the truth and the life, no man comes to the Father except through Me.” Is this a truth you’re investing in? If not, then you’ve sold yourself short. For true wealth, go long.
May you know true riches,
Joe
