When Open AI introduced Chapt GPT on November 22, they blew up the economy… In a good way. Nowadays, AI writing has become a norm.
I can’t believe it’s almost two years with AI now.
Back in Q4 of 2022, the world was in the grip of inflation. People warned of hyperinflation.
We were heading towards the Hyperinflation in the Weimar Republic of 100 years ago.1Source: Wikipedia
Then… AI came to the rescue.
The Ancient Greek philosophy of Stoicism has been around for more than 2300 years but is now more relevant than ever for investors. Those who want to build wealth in the stock market do well when they invest like a Stoic.
The core idea of Stoicism is simple: Focus on what you control and ignore everything else. But as investors, we tend to focus on the latter, which harms our future returns.
If you always focus on the factors you don’t control, like the state of the economy, inflation, or what the Fed does next, you will lose money. No one can predict macro factors or what the stock market does in the short term.
As investors, we should focus on what we control, and that’s a very limited area. Essentially, we only control our own decisions about what to invest in.
So, what would a Stoic invest in? Quality. As Seneca, one of the most famous Stoic philosophers, once said:
People often think you always have to make a major change to have a better life. But that’s not true. Small actions create a bigger impact on our overall well-being and happiness.
Look, life is never easy. It’s so common to feel stuck and aimless, especially when things aren’t going your way, like having a bad day at work or simply feeling unmotivated.
But you can change that. Right now. Today.
A friend of mine was saving for a down payment on a house. The target? A 10% down payment on a $350,000 property. After more than a year of disciplined saving, he had managed to amass about $20,000.
But then, he began to feel an itch. Why not use that money to travel? Or maybe buy a new car?