Welcome to Wise & Wealthy: A weekly newsletter full of proven ideas to become smarter and wealthier. I send this every Monday.
#137 – August 12, 2024
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Stoic investing
Stoic investing strategies teach us to manage our emotions and focus on the actions that lead to inevitable wealth.
The Stoics acknowledge that time – unlike money – is finite. That’s why a lot of Stoic investing strategies rely on living in the present moment and making time your ally. There are 4 ways to do this.
- Invest to build long-term wealth, not to make major purchases — Many people invest with the goal to make a lot of money so they can buy a bigger house, a new car, or to travel more. As a Stoic investor, you shouldn’t look at investing like that. Simply see investing as a way to compound your money so you can buy freedom, not things.
- Only speculate with money you can afford to lose — If you do want to trade stocks for short-term profits, protect the downside. Only make riskier bets with the money you can afford to lose.
- Stay invested even during market downturns — The stock market goes up and down unpredictably. Your job is to invest during it all.
- Invest consistently — The key is to invest a certain percentage of your income every month (10% is a great start). As you earn more, you will also invest more.
Stoicism is about focusing on the things we control. When applied to investing, it means investing your money now so you won’t have to work as hard in the future. More on this in my new article.
↳ What is Stoic Investing? (And how ancient wisdom makes you rich)
One interesting thing
In the collection, HBR’s 10 Must Reads on Managing Yourself, there’s anessay called “How Will You Measure Your Life?” by the late Clayton M. Christensen, who was a great thinker. He said:
“Your decisions about allocating your personal time, energy, and talent ultimately shape your life’s strategy.”
This is important advice. If you’re always occupied, you can’t allocate time and energy to shape your life.
Be aware of how you spend your time. Don’t live on autopilot. And avoid distractions.
Thanks for reading! I hope you found this edition of Wise & Wealthy useful.
All the best,
Darius
Order The Stoic Path to Wealth
My new book, The Stoic Path to Wealth (Portfolio / Penguin), is out now.
Learn more here: stoicpathtowealth.com