There Is No Tomorrow ⏳
Quote Of The Week 🖋
Have you ever felt inspired to make a change in your life and then not acted upon it? Did you notice a change in your motivation to act at the initial moment of inspiration compared to a few days or few weeks later? That is the The Law of Diminishing Intent at work.
The quote above highlights that the longer we take to act on our intentions, the less likely we are to follow through with them. It’s easy to put off our important tasks for another day. We like to tell ourselves “There’s always tomorrow”, yet when tomorrow comes we’re even more likely to delay. This cycle repeats until one day, the time to take action has passed us by and our good intentions forgotten.
This can be applied to all aspects of our lives. There’s people who have been waiting for years to get into the gym, start investing, applying for their dream job, starting a business. The only thing stopping them is that ever elusive “Tomorrow.”
Life is too short for inaction. Take action today.
When You Start Matters 💷
Sticking with the theme of this week’s quote, when you start investing matters. It’s hard to think long term in our instant gratification focused world but you need to plan for the future if you are to achieve financial freedom.
If you’re 20 years old and start investing £300 a month into an ETF that tracks the stock market returning on 10% annually, by the time you reach retirment age, your portfolio will have a value of £2.7m despite your contributions only totalling £162k.
If you wait until your 30 to start investing using the same methodogy, your portfolio value at retirement age will be £1.02m on your contributions totalling £126k.
Investing an extra £36,000 over ten years leads to investment gains of over £1.7m in the long term!
Time is your best friend as an investor, the longer you stay invested and let compounding work its magic, the larger your gains will be. What’s stopping you from starting today? £300 a month is £10 a day.
If you’re looking for a platform to invest, eToro is one of the easiest to use investment platforms. You can get started from an initial deposit of as little as £10 here.
Investing 101 📈
Over the last few weeks, I’ve been sharing key investment terms as well as some background on cryptocurrencies.
This week I thought I would cover one of my largest invesments and why I’m invested in the company*.
Company: Amazon
Ticker: $AMZN
Share Price: $3,052
Market Cap: $1.55 Trillion
2021 Sales: $470 Billion
2021 Profits: $33 Billion
Investment Thesis: Amazon is one of the largest companies in the world and is known for its relentless focus on customer service and execution. Whilst the likes of Apple, Google and Micrsoft have seen large increases in their share prices over the last 18 months, Amazon’s share price has been relatively flat during that period. This is despite the company almost doubling sales and trebling profits in the last two years. The average banking analyst 1 year price target for the company is $4,101, which represents a 34% upside to the current share price.
*Disclaimer: This is not investment advice. I am sharing the reasons why I am invested in this company. Please do your own research before making investing decisions.
What I’m Reading 📖
After The Fact is great short article (3 minute read) by Morgan Housel, author of The Psychology of Money (A recommended book in an earlier edition of the newsletter).
It covers how one of the most important factors that stop us becoming wealthy is our urge to upgrade our lifestyles as soon as we earn more. An important reminder of one of the major themes in his book:
“Wealth is what you don’t see.”
Question For You 💭
What’s something you’ve been waiting to act upon that you can make a start on this week? How much further ahead will you be if you spend an hour a day focusing on the task at hand?
Thank You 😊
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