Tuesday, May 19, 2020

Crystallising Creativity

Investing isn’t betting. It is true that you can trade anything with a number and a pulse. It doesn’t matter what thing is behind the number, as long as there is someone else you can play pass the parcel with. But that isn’t investing. When you invest you buy a slice of ownership in a company. You are a business owner. What the business does matters. You don’t have to find someone else to sell it to. The business has a product which it sells. It has the skills and knowledge to recognise a problem someone has, and to solve it. The problem may be someone wants Jam. The problem may be someone needs help making their own Jam. As long as there are problems, and as long as we are human and can’t know everything, there will be value to be created in cooperating. Investing isn’t playing the stock market. You become a part owner in a real company solving real problems. You get your money a real job. It has to work. If it does a good job, then it grows. If it doesn’t, it doesn’t. It grows by solving problem for money and reinvesting that money. There is no magic. It is simply the crystallising of creativity. Good businesses are built to last. Built to adapt, adjust, and accommodate a changing world. 

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