Connect with us

Wealth Hacks

4 Ways To Increase Wealth Using Charles Darwin’s Theory Of Evolution

Published

on

Charles Darwin and his theory of evolution revolutionized the scientific understanding of nature and biology. But because evolution is among the most counter-intuitive ideas in science, its public acceptance has been limited.

There are many intelligent and educated people who still do not fully understand or believe it. And more who may accept it as a scientific truth but have not adopted evolution into their mental toolkit, and do not apply it to their perception of reality each and every day.

Here are 4 ways Darwinian thinking can help you understand money, finance and markets, and help you build and protect your wealth:

1. Consider the stock market a biosphere of public corporations that live, evolve and die like plants and animals

The national financial folk wisdom of 1955 was, “As General Motors goes, so goes the nation.” Bankruptcy for GM was not only unimaginable, it would assuredly bring the nation down with it.

Yet as we all know GM did indeed go bankrupt in 2009, wiping out common shareholders. And the nation not only survived, our GDP has since nearly septupled, soaring from $2.8 trillion in 1955 to $18 trillion last year.

The DJIA is up from 488 to 26,000 this year.

Folk wisdom and common sense can be myopic, and perceive only the present-day reality projected upon the future. Why else should we be shocked by aging celebrities? Or when venerable corporations cease to outperform, and upstarts such as the FANG gang (Facebook, Amazon, Netflix, Google) take center stage.

“If current trends continue” always sounds prescient. But current trends never continue indefinitely in organic systems where birth, growth, death and evolution rule. The “widows’ and orphans’ stocks” of the 1950s, the stocks that would always be there, cannot always be there.

Corporations, like people, routinely grow, age and die. So how do you deal with it? Like evolution, you adapt. To a Darwinian thinker the true widows’ and orphans’ “stock” is a diversified index fund that will endure and grow, even as its components ripen, wither, fade, merge, are replaced and even die.

2. View every living thing, every financial entity, as primarily interested in its own survival, prosperity, expansion or reproduction

Long before Darwin, Adam Smith wisely wrote, “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.” Here’s the short version, courtesy of Warren Buffett: “Never ask the barber if you need a haircut.”

When buying stocks, insurance, or any other service, financial or otherwise, always remember the self-interest of the broker and the seller. A surgeon performs surgery. A lawyer bills every hour. A stockbroker lives on commissions.

A commissioned stockbroker who is reluctant to execute your order to buy shares of Berkshire Hathaway (full disclosure, I buy them, own them and have never sold them) knows you are statistically less likely to sell Berkshire than most other holdings; the money that purchases shares of Berkshire may likely never yield commissions or fees for any broker ever again.

3. Understand that deception and fraud are key survival tactics in biology and finance

A cat deceptively raises its hackles to inflate its size and intimidate enemies and predators. Other animals use mimicry, camouflage, surprise, and even feign injury or death to survive or devour prey.

Consider the Bible, which introduces the power of deception in human life: the serpent deceives Eve, Cain kills Abel and seems to deceive God. Believe it as literal truth or accept it as parable, Bible stories bespeak an essential truth about the centrality of deception in the biosphere.

So why should we expect to escape deception in the high stakes world of finance? While financial professionals provide customers with needed services, self-interest — conscious or not — may lead them to recommend managed mutual funds, closed-end funds, annuities, or complex insurance policies which provide large fees and commissions but may not serve the best interests of the client.

A broker recommending purchases to a client is not held to the fiduciary standard — to act solely in the interests of the client — but only a “suitability” standard, which leaves plenty of room to aggressively sell financial products that are lucrative for the seller, but not the buyer.

4. Realize that our instinct to trust our fellow creatures represents an eternal vulnerability in financial transactions

Humans are social animals, and humanity is a team sport. We are congenial and credulous by nature, which was necessary for the tribal life we evolved from, and is necessary still for sustaining the communal and national life in which we now live, work and prosper.

The counter-trend, so evident in wartime but also present in our workaday world — in media, markets, finance, government and even, courtship and family life — is manipulation and betrayed trust. Think of “fake news.” Think of the indicted politician, the con artist, the criminal, the sociopath.

But the Machiavellian betrayal of trust can be adaptive even in successful professionals, entrepreneurs, sales, courtship, marriage and family. A small child caught misbehaving by his father has a stock answer: “Mommy said I could.”

So how can we protect ourselves from our own congenital credulousness when approaching financial markets? Read, study and listen to credible sources that have a long track record of honesty and integrity.

If there were a Mt. Rushmore of investing I would nominate these three wise men: John C. (Jack) Bogle, Warren E. Buffett and Charles T. (Charlie) Munger. They have each long honored their investors as partners and friends and have grown their wealth alongside them.

My current book, Anyone Can Be Rich!: A Psychiatrist Provides the Mental Tools to Build Your Wealth, is dedicated to all of them — and was commended by Mr. Buffett himself.

This article originally appeared on ValueWalk. Follow ValueWalk on Twitter, Instagram and Facebook.

Wealth Hacks

5 Time Management Hacks For Your Work/Life Balance

Published

on

(Editor’s Note: The following article is a guest post by superstar entrepreneur and tech investor Jonathan Schultz.)

Everyone strives to maintain that perfect work-life balance. Having a fulfilling career and healthy home life is a tough combination to achieve, but if you learn how to manage your time well, it can be one. Here are five time-management hacks to keep your work/life balance in check.

HAVE A REALISTIC SCHEDULE

Setting a schedule the night before is a classic trick that is entirely effective. A to-do list allows you to cross off the things you have accomplished and gives you a sense of gratification. It also is a great motivator to keep completing tasks until you have finished everything for the day. The key is to be realistic about what you can accomplish. Don’t jam your schedule leaving little to no room for breaks or downtime. This will do the opposite of helping you maintain a solid work/life balance.

Try this tech: timetrade for Salesforce

BREAK TASKS UP

It can be so overwhelming to look at a huge task you need to do if you don’t break it down into smaller tasks. Instead of trying to clean your entire home in one day, clean different areas of your home on different days. This way, you won’t be overwhelmed by these larger projects and you can actually finish them on time.

Try this tech: Monday.com

SCHEDULE “ME TIME”

If you are constantly working and always on your phone or laptop, there is a good chance you are not relaxing or giving yourself a much-needed break. When you get home from work, put your phone away and revel in some “me time.” Do something to unwind and disconnect from work completely. Take a bath, read a book, watch TV or exercise. Just do something that will help slow your mind down and create a degree of separation between your work and home life. This is one of the most important hacks to maintain a healthy balance.

Try this tech: Toggl

DETERMINE YOUR PEAK HOURS

Are you typically up before the sun or staying away until 2 am? Knowing what time you operate the best at will help you schedule your most tedious and important tasks at this time. If you are a morning person, perform your tasks the require the most focus in the morning. You can use the afternoon or night to do repetitive tasks like making calls or catching up on emails. You may discover that what usually takes you an hour to do in the afternoon only takes you thirty minutes to do in the morning.

Try this tech: Screen Time

BOOST PRODUCTIVITY

Two of the biggest things we neglect are sleep and exercise – two things that can actually significantly improve your productivity. Studies and research have proved that exercise can help keep you alert, making it much easier to accomplish tasks. Of course, getting enough sleep and getting in short naps throughout the day can do amazing things for your mental health and helps you from feeling fatigued and burnt out. If you are more productive at work, you can get home earlier from work and have more time for yourself.

Try this tech: Noom and Mindfulness

Jonathan Schultz is an entrepreneur, real estate tech investor and influencer. He’s the co-founder of Onyx Equities, a leading private equity real estate firm, and has been voted one of the most powerful people in real estate. Follow Jon’s blog here.

Continue Reading

Wealth Hacks

VIDEO: Mark Cuban Shares The Best Advice He Never Got

Published

on

Billionaire entrepreneur Mark Cuban sat down with Business Insider to talk about strategy, success and more. When asked what advice he would give his 20 year-old self, this is what he had to say.

 

Continue Reading

Wealth Hacks

Riding The Flow Of Life And 4 Other Ways To Make Great Things Happen

Published

on

(Editor’s Note: The following article is a guest post by superstar entrepreneur and tech investor Jonathan Schultz.)

Going with the flow can be a scary idea for some people, simply because it means letting go of expectations —the number one killer of confidence. If you feel like you are constantly disappointed, it can be hard to just ride the flow. If you go with the flow, this does not mean that you have no power to create the life and career you want.

Here are four ways to make great things happen just by riding the flow of life.

PLAN LESS; FREE FORM

Do you have a plan for every hour of every day? If so, you are leaving little room in your life for riding the flow and being spontaneous. Maybe something larger would appear by just taking the action steps necessary to go in the DIRECTION you want to go, but not necessarily know the outcome in advance. Personally, any plan I’ve ever put on paper has never been the plan that ended up being successful —it was constantly pivoting while riding the flow. It is perfectly okay to have a solid plan for the day, but don’t overwhelm yourself by planning every moment of your day. Let yourself flow with the day.

CONTROL YOUR THOUGHTS, IT’S THE ONLY THING YOU HAVE CONTROL OVER

Practice gratitude, positive affirmations, and positive visualization to help your channel your thoughts into positive ones. There’s a reason why athletes, entertainers, and CEOs all take training in this discipline. A negative state of mind will keep you from going with the flow. Being able to look at things with a positive mindset will help you stay in the flow.

DON’T PLAY THE VICTIM

Image result for no victim

Many people don’t even know when they are lost in the victim role. They think they are strong and in control, but in reality, they are not. They are blaming their negative circumstances on everyone and everything else. This keeps you from riding with the flow because other people and other situations are controlling the direction you go.  You are in control of your thoughts and direction in life, even if you do not have control over everything that comes your way.

BE MORE COOPERATIVE AND WILLING TO HELP

Make the best of every situation that happens to you by being more cooperative. Look at everything from every angle and not just from your own perspective. A lesson can always be learned. Go with the flow and be patient when something does not go your way. Not every bad thing ends up being the bad thing you thought it was — it’s just a time where you were forced to follow a different course that was probably always the right way in the first place.

CHOOSE YOUR RESPONSE

Keep in mind that your reactions and responses dictate how you experience life. As things happen, learn to choose the best response possible so you continue to move in the positive flow of life. Choose patience, understanding and react positively and you will find that your experiences are much more rewarding, as well as less stressful.

Trying to control every situation in life will lead you to a lot of disappointment and will cause you to miss out on some of the most fun experiences in life. Some of the best memories are made when there is no planning involved. Going with the flow doesn’t mean relinquishing all control, it just means that you allow positive things to happen to you without forcing it.

Jonathan Schultz is an entrepreneur, real estate tech investor and influencer. He’s the co-founder of Onyx Equities, a leading private equity real estate firm, and has been voted one of the most powerful people in real estate. Follow Jon’s blog here

Continue Reading

Trending