The Investment Scientist

The Best Investment Now and Forever is …

Posted on: June 27, 2022

Today I had a very productive meeting with a long-time client of mine. At the end of the meeting, I mentioned that he appeared to have lost quite a bit of weight and he went on to tell me that through diet, exercise and some medications, he was able to reverse his diabetes. I am so happy for him! He is truly making the best investment in his life!

Did you know that Warren Buffet made 99% of his $90b wealth after he turned 50? To be more exact, he did it after he turned 54. Now he is 91. So how did he do that? After all, he is such a boring investor! He missed the best moment to get into AAPL. To this day, he is still not invested in TSLA and he totally doesn’t understand Bitcoin. In his entire investment career, he has rarely had a blockbuster win. So how on earth did he accumulate so much wealth? One often-overlooked reason is that he has lived a very long life.

Take this hypothetical entrepreneur for example. He is 54, has about $3mm in accumulated wealth and is able to invest $250k a year. With the normal investment return of a well-diversified portfolio, he will have $10mm when he turns 64, $100mm when he turns 91, and $1b when he turns 120! He will be an automatic billionaire if he just lives long enough!

What exactly is my point?
Health is indeed wealth! With a healthy body and mind, you will live a longer, more productive life and you can let compounding do the magic for you. So investing in your health is now and forever the best investment!

Another point: don’t be bothered by the market fluctuation! Be patient! If you live long enough, whatever you have now represents only 1% of what you will eventually have. Why fret about the fluctuation of that 1%?!

Schedule a 2nd opinion financial review, buy my wealth mgmt books on Amazon.

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Author

Michael Zhuang is principal of MZ Capital, a fee-only independent advisory firm based in Washington, DC.

Twitter: @mzhuang

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