Writing and Investing
Comparing both in a not so straight forward way
From yesterday till now that I type this, I haven’t given a thought on what exactly to write next. However, I have been consciously reading interesting articles on writing, remote work, and digital nomad lifestyle.
I came across David Perell’s post, The Ultimate Guide to Writing Online, and I have been religiously savoring it bit by bit, rereading parts that resonate well with me. I haven’t finished reading. Here are some elements that resonate with me and how I link them to investing.
A couple of weeks ago, I had dinner with an aspiring content creator. We’ll call him Mike. He’s been creating content for three years, but has struggled to build an audience. When I asked him about his distribution strategy, he told me he’s re-purposing his content for all the major social media platforms: Twitter, Facebook, Instagram, YouTube, and Snapchat. The plethora of options has paralyzed him. He can’t commit to a single platform, and committing to all of them is too much work. He’s become discouraged at what feels like an impossible situation.
From this excerpt, Mike repurposes his content for all major social media platforms. In investing, you are encouraged to diversify; however, there is a line you cross when you spread yourself too thin. When you diversify too much, your average return will reduce drastically.
Expect a small number of articles to outperform the rest.
Thousands of people, and maybe even you, are making the same mistake as Mike. Do less. Concentrate your efforts
Choose some few investments; there would be winners and losers.
Cut the losers and let the winners run.
Your winners are going to be few, but their returns would cover for the losses.
Your success won’t come from any one piece of work. It will come from your overall body of work. When people think about the return on investment of writing, they overestimate the short-term benefits but under-estimate the long-term ones. Consistency is the name of the game. Without a consistent writing habit, you won’t succeed as a writer. Start slowly, keep writing, and don’t stop.
Your success as an investor won’t come from any single investment. It will come from the overall investments you make. People look at the return on investments; they look at short-term profits or an increase in the price instead of the long-term. Prices and value of investments fluctuate on a day-to-day basis, but in the long-term, they produce enormous returns. Consistency is the name of the game, and without consistency, there’s no compounding of returns. Start small, keep increasing, and don’t stop.
Writing is the beginning, not the end.
Investing is a means, not the end. Why do you invest? I’m not a trader, so I don’t trade for a living, neither you who is reading this. Investing is a means to an end goal; most times, it’s the freedom to do whatever we want without the fear of a lack of income.
The ultimate goal of building a personal brand is to have a “Personal Monopoly.”
You want to be known as the best thinker in a skill or a topic. A Personal Monopoly is the unique intersection of your knowledge, personality, and skills that nobody else can compete with. Personal Monopolies aren’t found. They’re created.
Personal Monopoly brings together your personality, your knowledge, and skills that nobody else can compete with. In investing apart from the general guidelines and methods, you are the best at what you do. Investing in an asset because someone did is not the way to go. Don’t chase what everyone is doing. You have your strengths, risk appetite, weakness, and time horizon, so your game isn’t the same as the next person.
Don’t be a trend chaser.
The news is always after the event has happened or at least public knowledge. Don’t follow what you see on the news. The latest news or hottest tip isn’t what you should be after.
Writing and investing are two great habits to cultivate as they compound, and their benefits are still ahead. This writing is just a comparison between writing and investing of which I love and looking for ways to improve.