Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.
- King Solomon
These are words that we try to keep at the forefront of our decision making process. We live in a time where speculation is applauded as courageous, when in reality it is simply gambling as it has always been.
The problem we observe is that people like the idea of wealth, much more than they like the process of wealth creation. They are diametrically opposed ideas, however, which leads people down a path of trying to build wealth quickly. Even if they defy the odds and succeed, they are unlikely to keep it, as preserving wealth is yet a different skill entirely.
There are other obstacles beyond a lack of discipline and persistence. Our system is designed as such that the people at the top wake up every day and think about how they can take your wealth, and do so in a manner that you may not recognize.
These people understand that what we see in our bank accounts does not even exist (in most cases), rather it is a digital claim on credit and a liability for the institution holding it.
There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.
- John Maynard Keynes
There it is, in plain text, spoken by one of the principal enablers of this system. What might be too nuanced to grasp is that Keynes is advocating for this debauchery, yet in a way that is so gentle and insidious most don't recognize it happening. This type of thinking is the foundation of the lie that our system is created upon.
There is a great irony here, as in many ways what Keynes is suggesting fits the ancient guidance of King Solomon. There's only one problem: the government produces nothing, it only consumes. That means to feed their insatiable consumption habit, confiscation is the only means of acquiring.
Warren Buffett says: rule number one is "don't lose money." We think there is a useful twist on this saying, which is simply don't spend money. Spending is by definition, losing. Yes, investment is necessary and important, but a foundational principle necessary to follow King Solomon's dictum is simply despising the act of spending (or losing) money.
Most will shrug or laugh this off these days, as it is simply an out of favor perspective. It is much more popular to instead buy cryptos, NFT's or the latest hot tech stock. We get it. The idea of becoming wealthy is enticing.
If you are traveling down the path of King Solomon's advice, dutifully collecting wealth little by little, just remember that what you see in your bank account is not wealth. It is someone else's liability, which by its very nature means they will try to reduce the sum value of that liability.
Yes, if you are wondering, we are just an absolute blast at parties. :)