Thanks for joining me for another edition of the SerenityThroughSweat blog. This week has seen a flurry of activity in the stock market surrounding a few select companies and a “short squeeze”. With no intention of turning this blog financial, I wanted to talk about investing.
In my crusade away from mindless social media scrolling and towards productivity, I decided to read John Maynard Keynes General Theory of Employment Interest and Money, last year around this time. Despite what was a painfully dry reminder of why I am a pilot and not a mathematician, economist, or theorist, I found some unconventional wisdom in Keynes that applies decades later. You can find that post here. This past week reminded me of my headfirst flop into economics and investing.
What we saw in the stock market over the last week was more about making a quick buck, than it was about an appreciation of value. Without picking sides, or evaluating the morals and ethics involved, both those with short positions, and those who applied the squeeze, were trying to make money without any concern for what that meant for the other parties involved, including the companies they were buying. This was more like gambling than investing.
Investing was always meant to be a rising tide to lift all boats. A way of getting resources to those that need them, as a means to increase production, efficiency, value, etc… Not a game where money flows in and out of accounts despite no tangible change in value to the core business being invested in.
See if that type of “investing” works anywhere else. Fitness, parenting, your job, your education, your marriage. “I had call options on our marriage so you have to stay with me for a few more years even though I’ve been neglecting you.” Or maybe “I shorted my weight position at new year’s but was forced to close the position after the super bowl party artificially influenced the scale”. It just doesn’t work.
Yet we find ourselves with an incredible amount of fiat currency changing hands, without any real change or production of value.
Investing is intended to increase value. Invest money in a business and it can grow. Invest time and energy in yourself and you can become stronger, faster, smarter, healthier. Invest time and energy in your relationships and you will be a better parent, partner, or friend.
Real investing, whether it is in the market, or in yourself requires doing the work, day in and day out, and patiently attending to those positions, while they appreciate and mature.
So the real question is, what are you investing in these days?
Thanks for joining me, stay safe and stay sweaty my friends.
