I’d like to start a new video series that discusses superpowers that all investors can possess. Before we discuss investors, let’s bring this back to the days of the Tanach.
In the tachnach, or bible, it’s filled with amazing individuals who, through divine intervention, exhibited what we might consider “superpowers.” Some examples include:
Moshe: Used his staff to part the Red Sea, bring water from a rock, and initiate the plagues in Egypt. He also turned the staff into a serpent.
Yehoshua: Stopped the sun during the battle of Gibeon to prolong daylight.
David: A young shepherd boy defeated the giant Goliath with a sling and a stone.
Shimshon: Had extraordinary strength, which he used to defeat the Philistines.
Eliyahu: Performed miracles and prophecy. He called down fire from heaven, resurrected the dead, and ascended to heaven.
Elisha: Miraculously healed Naaman’s leprosy, multiplied oil, and resurrected the Shunammite woman’s son.
These figures all show divine power and intervention working through individuals to achieve remarkable feats and deliver BneiYisrael from various challenges.
Investors also possess superpowers that can help them overcome financial challenges. If implemented, they can help families – even those with modest incomes – achieve wealth and prosperity. In my practice, I come across folks like this frequently. Despite never having a high paying career, they utilized what I call the “three investing superpowers” to propel their wealth to the top 10% of U.S. households. This gives them the opportunity to improve their lifestyle and the community around them. Let me discuss three investing superpowers:
The first is a High savings rate: A high savings rate is more important than trying to achieve high returns. Future returns are impossible to predict. Companies experience financial difficulty and go bankrupt. Money managers go in and out of favor, as do asset classes. Investors can exert far more control over how they choose to allocate their cash flow. Therefore, deciding to maintain a high savings rate throughout your working life is one of the best tools investors have to secure their financial future.
More savings means more funds to invest for the future. This extra money will help increase the probability for investors of all levels of wealth to achieve their goals. Striving to save 10-20% of your income every year will help in overcoming whatever financial challenges may present themselves over time. If someone needs to stop working due to illness, company downsizing, or any reason, a prior high savings rate will afford them the financial flexibility to weather the storm until they find another job or perhaps allow them to retire early.
In the next video, I will discuss additional superpowers that investors possess.