This is one of the finest films ever made. Ray Dalio should have won so many Oscars.
If you don’t have half an hour to spare, here are the three key takeaways:
- Don’t have debt rise faster than income.
- Don’t have income rise faster than productivity (you’ll price yourself out of the market)
- Do all that you can to raise your productivity.
These three rules apply to governments, corporations, and individuals.
By the way, the only time a capital outlay can be called an “investment” is when it is used to raise future productivity. That stock portfolio of yours is really a high-maintenance savings account, and your stock purchases are merely trades.
Other things that are not investments: insurance policies, art collections, personal vehicles, houses, derivatives.
Things that are: undeveloped property, private businesses, a personal vehicle used by an Uber driver, education.
Sleep is another great investment. The best investments in life are free.
“Your portfolio is a place where you are simply trying to grow your savings at a reasonable rate without exposing it to excessive permanent loss risk or excessive purchasing power loss. It’s not a place for gambling or getting rich quick.” –PragCap
PS. Things look different. I finally got around to making this site mobile-friendly.