• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Retirement Field Guide

Retirement Action Plan

  • About
    • About Ashby
    • Who We Serve
    • Contact Us
    • Disclaimers

The Retirement Field Guide

Home Link

Sharing in Long-Term Prosperity

by Ashby Daniels, CFP®

Many investors like to compare equity investing to gambling as if the odds are somewhat similar. But, of course, there is no comparison. The former is the greatest wealth creation tool ever known to mankind and the latter collects money from starry-eyed patrons hoping to hit it big.

In his annual letter to shareholders, Warren Buffett, the world’s most admired (and least imitated) investor, had this to say about his portfolio of equities:

“As I’ve emphasized many times, Charlie and I view Berkshire’s holdings of marketable stocks - at year-end worth $281 billion - as a collection of businesses. We don’t control the operations of those companies, but we do share proportionately in their long-term prosperity.”

This is a useful reminder that we aren’t investing in some random assortment of speculative bets, but businesses owned and run by some of the smartest and most capable people on the planet.

It’s also worth remembering that many of the richest people in the world are owners of businesses. Buffett, Bezos, Gates, and Musk, to name a few are all worth more than $100 billion as a result. And, as Buffett alluded to, that fact is the best illustration of the beauty of the public markets as they offer the opportunity to invest alongside these titans of industry and to financially participate in their genius.

It seems obvious, but these owners/investors don’t typically sell their stakes during periods when prices drop. If anything, they tend to be buyers accumulating more at discounted prices. Many investors struggle to follow suit thanks to the media’s negative influence.

How can we handle the onslaught of media negativity? Having the proper long-term perspective is one way. For example, do you believe that most people wake up with a desire to make their tomorrow brighter than it is today? If so, you have a basis to be a long-term investor.

As Buffett continued,

“Success stories abound throughout America. Since our country’s birth, individuals with an idea, ambition and often just a pittance of capital have succeeded beyond their dreams by creating something new or by improving the customer’s experience with something old.”

As long as this is true and the public markets offer the opportunity to share in the long-term prosperity of the great businesses of our time, staying invested seems to be the most rational approach to wealth accumulation.

Stay the course,
Ashby


This post is not advice. Please see additional disclaimers.

Filed Under: General

Primary Sidebar

Search Blog

Categories

Archives

Footer

Join the Retirement Field Guide Newsletter

Subscribe to get our “Preparing for Retirement: Seven Essentials for Successful Investing in Retirement” whitepaper!

We won't send you spam. Ever. Unsubscribe at any time.

  • This field is for validation purposes and should be left unchanged.

Follow us:

LinkedIn

  • 600 Waterfront Dr Suite 125,
    Pittsburgh, PA 15222
  • (412) 742-4861
  • Email Me

Large Map Directions

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Raymond James financial advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Contact our office for information and availability. Retirement Field Guide and Shorebridge Wealth management are not registered broker/dealers and are independent of Raymond James Financial Services, Inc. member FINRA / SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James Corporate Privacy Notice.
FINRA BrokerCheck

Copyright © 2022, Retirement Field Guide. All Rights Reserved.  |  Privacy Policy  |  Design by Tinyfrog Technologies.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
ACCEPTREJECT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via , ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT