Playing The Long Game
I have personally never gone into buying stocks nor have I taken more than a minute of my life to check the stocks on my phone. What I do know is this. If you make a great investment you’ll have better chances of getting an even greater return.
If life is a collection of choices and we have 86,400 seconds in a day to make them we have opportunities to invest wisely in our life (and others) or invest foolishly.
I saw a post on Instagram recently telling a story of former NBA player Spencer Haywood. Haywood back in 1973 was given the chance to sign a contract with Nike. The contract came with two options.
Sign and receive a wholesome $100,000 which is a good chunk of change now, but in 1973 might have seemed like the lottery. According to inflation over time that $100,000 would be worth $552,072.07.
He could sign and have an investment of 10% in the Nike company.
Spencer Haywood chose the immediate $100,000. Today according to that post, the share of Nike would be worth $12.4 Billion today.
Another great example is stocks because of the connection of investment. You hear stories of people saying if they would have invested in Google, Apple, Microsoft, or any of the big time companies they would be incredibly wealthy off the return. That sounds great, but examples of twenty-five plus year investments don’t always hold true to people today. So I wanted to look at ten years. Using CNBC’s research I saw a nice graphic showing what return a person would have gained if they invested $1,000 into companies over ten years. Of all the companies today Netflix has become a giant in the entertainment industry leaving all others to try and catch up. If you would have invested $1,000 in Netflix ten years ago you would have received a return of $51,966! Compare that to General Electric where you would get a return of $490.
Our investments will make the next decade or so of our life. It’s a great reminder for myself to think of the true value of what I work on, spend my time/attention, or use my money. In a podcast I listened to over the weekend I heard an interview with well known entertainer and DJ, Afrojack. He said that his success was in large part to him starting to work on music at the age of eleven. He had decided at an early age he was going to invest in that talent and dream. Sometimes we push things off because we aren’t there yet.
Invest in things that benefit the long game and not always the short term feel good
Take Action - action gets to results
Don’t Waste Time - You’ll never get it back and your time is precious.
Believe - Invest in what you believe in with great conviction. If you don’t 100% believe it then you shouldn’t invest.
No Means No - Be ok with saying “No”.
Other People - Find the people that help your investment.
Listen to my podcast: TGIM: What Are You Investing In?