We know that hard work and savings returns are not enough. We’re not going anyway.
Working income doesn’t increase much. The interest on savings is very low and barely compensates for inflation. It’s like moving in “slow motion”. At a snail’s pace, and sometimes backwards, like the turtle.
We must put our money to work for us. But how can we do it? By putting the global economy and the world working for us.
By investing in the best companies in the world economy.
The economy is global. The finances must also be global.
We could, or rather should, be owners of some of the largest companies in the world. We can invest like Jeff Bezos, Bill Gates, Warren Buffet, Mark Zuckerberg, Amancio Ortega, Carlos Slim, Bernard Arnault, Larry Ellison, Larry Page, Jack Ma, Mukesh Ambani, and many other of the world’s largest fortunes, shareholders and managers of the largest companies in the world. Have a tiny part of all its businesses. Buy the same stocks they own and their companies bonds.
Now, we don’t need to buy these securities one by one. We can buy many or even all of them at once. This is done by buying investments in major stock and bond market index funds and other similar securities.
We can invest simultaneously in Amazon, Microsoft, Berkshire Hathaway, Apple, Toyota, Samsung, Pfizer, Merck, Unilever, Alibaba, LVMH, Siemens, Inditex and many others.
Investing in the United States, Japan, Germany, United Kingdom, Australia, Switzerland, France, Spain, Canada, Norway, Finland, China, India, Mexico, Brazil, Indonesia, Russia and South Africa, etc., that is, a little all over the world.
Invest in energy, banking, technology, consumer products, natural resources, raw materials, pharmaceutical, biotechnology, agriculture, televisions, automobiles, etc.
Invest in airplanes, renewable energies, payment systems, food, medicines, clothing, etc.
Investing in the “old” economy, as well as in the current and the future economy. Buy railways, miners. Buy large vintage banks and the “new” banks with strong growth, autos with and without driver, local hotels and accommodation, open air tv and streaming channels, no-calorie beverages, natural foods or not, hypermarket chains and online shopping markets, etc. With half a dozen investments. Easily. Without any work. Sitting on the couch. With little money. And at a very low cost.
Afterwards, we only want to see the sales and profits growth of these companies. The managers do the innovations. Launch the new products. Expand into new markets. Mark fashions. Create needs. Well managed companies, large, huge, global, scale, size, with muscle, strong, talented, creative, visionary, mark the rhythm, making a difference, grow the results today, tomorrow and the day after.
The Little Book of Common-Sense Investing, John C. Bogle, Wiley, 2007 – Investorpolis
There are these investment index products or funds for all main stock market indexes that we want to: on MSCI World, many hundreds of the largest companies in the developed world; on the S&P 500, of the stocks of the 500 largest American companies; the Eurostoxx 50, the 50 largest companies of the European Union, the Nikkei or Topix for Japanese companies, the Footsie 100, the 100 biggest UK companies; the MSCI Emerging Markets for the largest Chinese, Indian, South America, the rest of Asia, of African companies.
The same goes for the main worldwide bond market indexes, where we have investment products and index funds on hundreds or even thousands of Governments and large companies worldwide.