Benif

A solution to this problem is to just have a normal burn rate, a normal middle class lifestyle. (A USA middle class lifestyle is better than what 99.9% of humans who have ever lived experienced.) Invest the remainder of your massive income so you’re financially independent early.

Ngl I think this new age we are in has massively upgraded the value of frugality-maxxing... Like 10 years ago I was very open to the idea you'd hear all the time that "you just need more income bro..." Like the solution was always just more income... the opportunities are out there, the money is being debased, 'just make more money bro...' The problem today though is that things are so fluid that you never know which opportunity or endeavor is actually going to work, or how long it will work... And investments-wise... they're now creating gold via alchemy and the entire internet is hackable for god sake... so even in that realm things are changing rapidly... And business-wise, today... because of the fluidity of the online economy... you can't just say "I'm doing xyz business model and I'm not stopping until I'm at $30k profit per month..." because you don't even know if it will work in a year... So as a result I think the ability keep expenses low (relative to total assets owned) is way more comparatively valuable.... Not just in a defensive position either, but because doing so allows you to really take advantage of the best feature of the AI economy, which is the speed of action and opportunity it presents... And if you're living on a super low amount you are just better situated to dive on new opportunities as they present themselves... Think the key is to just get a decent stack of a few different assets... get your expenses super low... and then from there just try to do cool productive stuff and always be diving down interesting new rabbit-holes 💪

the moves to get from 0 to $1m are different from $1m to $5m, $5m to $25m, etc. the amount of free education on this app is a blessing

What is the most enduring long-term trend in investing I’ve ever seen? Over rolling 10-year periods since 1975, a large cap HIGH PROFITABILITY Index has outperformed the US stock market 94% of the time. 94% is unheard of. There is nothing I've ever found in the data over this amount of time—not the equity premium, size or value or term/credit premiums; not US over foreign—that worked so reliability. Its not a huge premium, just a hair over 1%/yr, but durable as an old Toyota. And it brings up the obvious—but very uncomfortable for some (esp Bogleheads)—no one should own the market or S&P 500 index. Even if you want a 100% large cap portfolio, you should be 100% high profitability. Ive never seen anyone (besides me) say this.

I like this “sleep-at-night bond portfolio”: “60% of your bond portfolio to short-term Treasurys” “20% to intermediate-term bonds” “For the final 20% of a bond portfolio, I recommend inflation-protected Treasury bonds”

A huge problem here on X is what we call the screenshot millionaire problem. There are about 58 million millionaires in this world and 420 million of them are here on X. Everyone is 24 years old with a $2 million portfolio. They showed you a screenshot which means it's true. So your average Robinhood account with $5K thinks they're way behind the ball and they start looking for shortcuts. Consequently, they start making bad decisions like: ❌"full porting" ❌dabbling in options ❌trading on margin ❌buying astrology for men courses The reality is that building wealth is a long slow boring process. The most important acronym in the financial world is simply this - TINSTAAFL.

There are so many highly-paid, highly-educated white collar professionals in their 30-50s who could easily come up with $1 to 3 million in liquidity within a few months of planning even if they don't feel "rich" in any practical sense. All they have to do is abandon all preconceived notions of "success" and what life is "supposed to" be like... and ignore all psychological and emotional sunk costs... simple, right? If two working spouses... maybe $500-$750K in retirement post-fees and taxes. Then maybe $500K in home equity. Add whatever other savings or investments... and they're in that range. Throw $800K into the S&P500 (maybe the equal-weight index if they're worried about AI/tech concentration) and there's ~$700/month in dividends (which grows faster than inflation) plus a long-term expected ~$80,000/year capital gain (which compounds). Throw the other $200K into a money market or bond fund and that's another $500-800/month in interest. Now you have $1,200-1,500/month in *passive* income. This could fund all or a significant portion of rent in a lower COL part of the world for you and your family for some adventurous period of time... establishing core memories for your kids while also exposing you all to healthy adversity and discomfort. To offset market volatility, you can sell your professional expertise fractionally or part-time at 1/10th the hours you usually spent doing it full time... or consult as-needed... which also keeps you fresh and professionally relevant. Why don't more people do this?

Problem for $BRK is that those yields, net of inflation, are at ~2% at best and do not grow. Add on top the corporate tax burden, and you get to paltry net real returns. That cash position ceases to be an asset if you never deploy it as oppty cost just compounds in your face.

The English version for those who would like to read it. It is worth the read.

Personally, I have a theory that the reason schools still teach Modern Portfolio Theory is that it's teachable. It is elegantly laid out in simple formulas and glows with an air of scientific sophistication. On the other hand, the real-world investing that was practiced by Buffett and Munger is full of common sense but very difficult to express in precise formulas. It is fuzzy and ambiguous. Try to teach that in the classroom!