The days drag on. The decades fly by.
When it comes to building a portfolio to last a lifetime, the past two decades have flown by, at least for me.
It has been two decades since the Dow Jones Industrial Average has gone from 9,000 to 36,000.
Maybe I benchmark the last two decades because that is when my first book, The Coffeehouse Investor – How to Build Wealth, Ignore Wall Street and Get On With Your Life, was published.
The following is an excerpt from that book. . .
“. . . there seems to be a lot written these days about the financial decay of our society, how we are becoming a nation of spenders, running up credit card bills and running down our savings accounts.
But along with the woeful tales of those who spend too much is another story that needs to be told: that of millions of Americans who do want to take responsibility for their saving and investing decisions, by making the right choices today for a secure financial future twenty years from now.
The challenge of wanting to take personal responsibility for our financial well-being is that our choices are so ill-defined and results so uncertain that we hardly know where to start. To complicate things, we are bombarded by Wall Street’s relentless advertisement suggesting that our investment success lies in its hands, or at least in its ability to pick stocks and mutual funds.
Eventually, we start thinking that our responsibility becomes Wall Street’s responsibility. Instead of focusing on our savings and spending, we start focusing on stocks and mutual funds. It is hard enough achieving clarity of purpose with our own saving and spending issues; why complicate things by pursuing the top stocks and mutual funds, an endeavor that is irrelevant to your investment success.”
If you do want to build wealth, it will require you to ignore Wall Street and get on with your life.
Twenty years from now, if the stock market triples, it will be trading at over 100,000. Building a successful portfolio today starts by recognizing that while the days might be filled with economic and stock market unknowns, the decades fly by. The time to make smart investing decisions is today while time is on your side.
Simplify your portfolio and get on with your life. Take this short survey and let's start building.