On financial inclusion

Hello everyone,

As this is the inaugural post it will be a bit more theoretical. I am excited to start sharing all my work and I hope to have frequent op-eds from people with skin in the game.

There is a big problem in our global village which is ever more important as the money printing machines are doing overtime everywhere (in fact there is no actual money printing, it's all digital).

The problem is that there are two ways of creating wealth. One is to work and the second one is to invest. Ray Dalio (my favorite visionary) teaches that the economy does well when innovation and work create wealth. The second way is just riding the wave of the first one. And boy is it profitable.

For the last five years a minority of the world population doubled their money. In order to do this you need to save painfully and then invest but only after you have an emergency fund secured. So you need to save for a long time. USA has more wealth than many other nations in part because of their investing culture. Everyone has a 401k or Roth and this money is getting (re) invested in local companies. It can be unheard of for people in Europe to just put your retirement money in the stock market. Still, that's part of why SP500 gains are much superior to EU stock markets (but of course not the only reason).

You may be wondering what action should you take. I will answer this from some personal experience. Time and time again I have chatted with friends that have financial troubles only to learn that they want to put 90% of their cash into a depreciating asset like a new car or big TV or whatever. You need to be VERY frugal.

Even if the true scale of the problem can be addressed only by political change, at a micro level you can decide your own destiny. Here in this newsletter I will be sharing my investing methodology for fun and profit as they say.