What We’ve Faced and What We’re Facing

I started PFC almost exactly four years ago! And EVERY DAY OF MY LIFE SINCE THEN, someone asks me a question along the lines of “Are you sure we should be investing in the face of the unprecedented __?” Fill in the blank with pretty much ANYTHING. (Market up, market down, pandemic, GameStop, Deflation, inflation, high rates, low rates, whatever).

Here’s the thing about things that have never happened before: They happen all the time. TOMORROW, I promise you, lots of things will happen that have never happened before. CAN YOU IMAGINE, going back 100 years and rattling off the list of UNPRECEDENTED things we were in store for over the next century?! It sounds like an over the top doomsday movie.

YET if you invested $100 in the stock of the US companies back then, and simply held (or occasionally traded so you still owned the biggest stocks in the market) you’d have about $2 million bucks today! OF COURSE, no one has a 100 year investing time frame, but ANY TWENTY years along that path was pretty darn good too.

And of course it’s easy to be confident looking backwards, but looking forwards is scary. It FEELS uncertain. And it is. No one knows the future. BUT, the fundamentals of investing are still true. Buying things that pay you while you hold them and are likely go up in value is a good idea. As long society still exists, companies will exist to provide goods and services. Those companies must profit to stay in business. And owning those profitable companies is financially a good idea. That’s why I love index funds! One stop shop to buy all those delicious companies.

Buy my course so you’ll know this stuff and I can come on your yacht later.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Jeremy

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