- The rich talk about ideas.
- The middle class talk about things.
- The poor talk about other people.
We’ll forego complicated reasoning.
And resort to simple economics.
If you had $20,000 in savings, where would you invest it right now?
- Savings account: 1%. You’re losing to inflation.
- 10-year Treasury: 2%. Still losing to inflation.
- Stocks: Liquid. High returns. Good track record since the crash.
- Commodities: Most novice investors don’t trade commodities.
- Real estate: Illiquid. Capital intensive. Liability. Management.
- Business: Capital intensive. Regulation. Liability. Management.
If you chose stocks.
That’s what everyone else is buying.
Because there’s no other asset to invest in.
That can beat inflation after taxes.
But think about it.
How can you get a good deal when prices are at all-time highs?
And almost everyone has bought into the market?
Assuming most investors have already bought.
What’s their knee-jerk reaction when prices stop rising?
And there’s nobody left to buy?
That’s when panic sets in.
And the market is due for a drop.
Anybody can be an entrepreneur.
It’s not a big deal.
You don’t need to accomplish extraordinary feats:
- Court venture capital.
- Be a brilliant software engineer.
- Start something innovative or inventive.
- Create a “high-tech” social media app.
- Go public and cash out for billions.
An entrepreneur makes money by selling products and services for a profit.
Do you have to take great risks to be an entrepreneur?
The less risk your venture faces, the better odds that you’ll make money.
Why court risk?
Better yet, eliminate it.
Don’t be intimidated by people who throw the word entrepreneur around like they own it.
You can become an entrepreneur.
You probably already are.
Just sell something.
Any product or service will do.
- Exterminated after second week waitering at a retirement home—16 years old.
- Walked out of Fry’s after a month while schooling UW full-time—20 years old.
- Quit after first day at AT&T and two weeks of training—22 years old.
Obviously, I’m not a good employee.
Haven’t had a job since.
Except waitering at Pho joints around UW and Ballard for cash in 2008.