Nothing Pie

There are a few hard truths about investing. The market is both noisy and irrational, and making good decisions is not the only factor in success. It is not even the main factor. The father of Fundamental Investing (“Security Analysis” Benjamin Graham 1934) only outperformed passive investment by about 2% over his career. Making alpha (outperforming the benchmark) your goal is incredibly dangerous. It opens up an existential crisis where an entire career can factually (by your own definition) have added no value. You cannot eat alpha. Alpha on nothing is nothing. 100% ownership of a 10% alpha generating nothing pie is nothing. Often the conspicuous success of investors is based on (1) inherited wealth, (2) big salaries, (3) sales, and (4) fees. The main factor in wealth creation is saving and reinvestment. Getting money a job. Making sure that job adds value. Reinvesting the money money makes. It is not about you, how smart you are, or whether you see the matrix. I am not Neo. You are not Neo. No one is Neo. The world is complicated, ambiguous, and random. There are no heroes. We are all just doing our best.

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Enough is Basic

“Enough to do anything, but not enough to do nothing”. That is what Buffett believes wealthy parents should give their kids. The keyword there is enough. What is enough, to remove obstacles? What is enough, to remove our fire? The world is wealthier than it has ever been, and the tools required to create wealth have been passed down. Money is made by identifying, understanding, and solving problems for a community of people with a similar need. A Universal Basic Income would serve two clear purposes. First, making everyone have “enough” for their community’s problems to be identified as a target for solving. Second, ensuring everyone has enough to raise their eyes from their own problems. Basic. A base from which to explore. A base from which to create. A base from which to thrive.