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095 Versus “The Gathering Darkness,” Part 4 – Support Ownership of Great Businesses By Observing Inconceivable Progress
Episode 9521st February 2024 • Mindful Money • Jonathan DeYoe
00:00:00 00:13:57

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In this episode, I invite you to unlock the potential of your financial future through the lens of innovation and human ingenuity. Together, we dive into the world of investing where I blend personal stories with historical insights to show you how investing in pioneering companies can lead to significant wealth creation.

Imagine being part of the groundbreaking journey of a company like the one that brought you the iPhone, and the potential financial rewards that could come with it. As we navigate the importance of being shareholders in these transformative enterprises, I share my passion for the relentless progress they represent and the benefits gained by those who invest wisely.

We also take a closer look at retirement planning, where I challenge the traditional growth versus income debate. I discuss a blended approach that maximizes retirement income through the growth of innovative companies, offering you a strategy to secure a financially robust future.

I want to bring you into a community where we stay ahead of the curve, making informed investment decisions that enrich our lives. Next week, we'll continue this conversation, but for now, I'm excited for you to join me in rethinking how we can harness the power of growth to empower our retirement aspirations.

Don't forget to engage with the episode for a richer experience, and I hope you'll be as excited as I am to be part of this investment journey.

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Key Takeaways

00:00 The Power of Innovation in Investing

12:54 Maximizing Retirement Income Through Growth

Tweetable Quotes

"Second only to love, human ingenuity and its expression through innovation is the greatest force on earth."
"One small handheld device operated by a teenager in 2023 has more computing power than all the IBM mainframes on the planet the year I was born, 1971."
"Publicly traded equity ownership provides remarkably consistent long-term returns. Short-term is a crap shoot. No one has any idea, no one can predict, and it's perhaps the only true passive investment out there."

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Transcripts

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When an innovation proves valuable, that value will find its way to the bottom line of publicly traded companies. If it's really valuable, one of the companies in our global index will buy it outright and capture the lion's share of that value for their shareholders. In case you're not clear about this yet, we are the shareholders.

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Do you think money takes up more life space than it should? On this show, we discuss with and share stories from artists, authors, entrepreneurs and advisors about how they mindfully minimize the time and energy spent thinking about money. Join your host, jonathan Dio, and learn how to put money in its place and get more out of life.

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Hey, welcome back to Mindful Money. Today I'm continuing to lay out the case for owning shares in the great companies of the US and the world. If you're just tuning in for the first time, I would encourage you to go back and listen to some of the prior episodes that lead into today. This is where we've been so far. Four weeks ago, we determined two things First, that wealth is created by owning great businesses and, second, that the reason most people decide to not own them or own less of them is where we summarize it as the gathering darkness. Three weeks ago, we talked about how the words we choose to describe the ownership of great businesses can affect our commitment to owning them. Two weeks ago, we discussed how important it is for investors to have an adult memory and actively cultivate their knowledge of history to sort of see how progress is always happening behind the darkness, and last week I laid out the first, my favorite, unique characteristic of rational, profit-seeking businesses, which is their absolute refusal to lose money for any longer than necessary. This week, I wanted to complete the story by expressing the second of the two great reasons for owning equities or the great companies of the United States and the world Innovation. Second only to love human ingenuity and its expression through innovation is the greatest force on earth. The exponential growth of human knowledge shows up powerfully in the growth of the great companies of the US and the world. These two complementary ideas, innovation on one hand, and capital protection on the other, form the foundation of my preference for equities over any other investment. Nothing else combines both passivity and return in quite the same magical way. So let's talk about innovation.

er photos and videos. It's so:

he planet the year I was born:

But that's not all. Anyone using this small handheld device can look up all the public information in the world on any subject, for no cost. The information accessible in seconds with this device would have been impossible to access when I was born without months of effort, multiple librarians, armies of bibliography, cross-referencing academics and the ability to travel around the world to locate rare written materials. Now it's available at any time, from anywhere, to anyone with a small handheld device. But that also is not all. As we mentioned, all the information on nuclear physics, industrial biochemistry, history, any period, any location, and even all the information you might want to find on giraffes or penguins or how to remodel your bathroom is available on this device. However, some of the information you find will be in another language. Not to worry, the phone will translate it for you.

of such a device since, say,:

You actually don't have to go back much further to find time periods without telephones, radios, tvs, airplanes, cars, electricity, indoor plumbing. My dad, when he was growing up in the houses he and his family lived in as a kid, didn't have electricity or indoor plumbing. Each of these technologies were pressed by the great companies of the US and the world, and these companies were and are great long-term investments. What's more, the inconceivable progress never stops. I mean, many people say well, we can't see it's not happening now, but that was all stuff that happened 20 years ago.

I purchased my first Tesla in:

3d printing started out with printing these small physical objects, toys like out of plastic resin from digital designs. It's now scaled to enable printing affordable housing units and has been fine-tuned to print human organs. Capsule endoscopy reduces the need for traditional invasive endoscopic procedures. The pill cam is transforming gastroenterology and making ordinarily horrible medical procedures more bearable. As a 52-year-old, this might be my favorite.

Crypto is still a bit of a solution searching for a problem, but the underlying technology, the blockchain, is already changing the world. The blockchain's method of recording data in a decentralized, tamper-resistant ledger is changing how we think about digital transparency and security, and it's improving the product validation in supply chain management. Streaming audio and video services are changing how we consume music and movies. Netflix and the like are changing product distribution for the entire entertainment industry. Smart home appliances like Amazon's Echo and Google's Home enable both on-site voice enabled control of your home environment and improve remote management of household systems like heating and lighting. The Smart Home's little brother, which is kind of the Internet of Things, improves decision-making across industries, makes our homes just a little bit more convenient. You may not have this fridge yet, but your next refrigerator is going to sense when you're running low on milk and it will order it for you so you never run out.

Quantum computing is exponentially faster and will enable humans to solve problems that have thus far been completely out of reach. We don't yet know where this is gonna lead, but Star Trek just got a little bit closer. Combine this with some improved 3D printing technology and, like Captain Picard, you're gonna be able to order T-Gray Earl Hot from a nearby replicator. Human genome mapping has opened the door to better understanding both our genetic traits and our health, think personalized medicine, the careful removal of genetic birth defects and maybe even enhanced humans, and all the ethical questions this will bring up. And there's so many more than these. What about GPS and drone technology, hydrogen fuel cells, reusable rockets, autonomous vehicles, cloud computing, biometric scanning, virtual reality, augmented reality, machine learning, low-cost renewable energies and artificial intelligence?

e but to accelerate. The year:

Progress on a scale that's been literally inconceivable is delivered on a regular basis by the great companies of the United States and the world. We can participate in the profits of these businesses by owning as broadly as possible so as not to miss anything shares of global all cap equity indices. Rational, profit seeking businesses will seek out, test and utilize all new innovations at their disposal to create new products, expand into new markets, reduce prices to their customers. When an innovation proves valuable, that value will find its way to the bottom line of publicly traded companies. If it's really valuable, one of the companies in our global index will buy it outright and capture the lion's share of that value for their shareholders. In case you're not clear about this yet, we are the shareholders. Last week we talked about the first of two great reasons for owning equities they protect our capital. This week, we sort of completed the discussion by expressing the second of two great reasons for owning equities human ingenuity, as expressed in innovation. These two comp and our ideas completely express my reasons for being a shareholder.

I do not need to hold on tight to equities. I am not white knuckling my equity ownership and you don't need to either. I love owning shares of the great companies of the US and the world. I love that the companies produce all the things I need and want. I love that they come up with intriguing new products and services to fascinate and delight myself and all of my fellow humans. Finally, I love that it's so incredibly easy for us to participate in the profits they produce.

Publicly traded equity ownership provides remarkably consistent long-term returns. Short-term is a crap shoot. No one has any idea, no one can predict, and it's perhaps the only true passive investment out there. If there was a single reason that I think I was put on this earth, it was to help you love equity ownership as well. I wanna say thanks for listening. I'm gonna be back again next week to talk about why I love owning the great companies of the US and the world, specifically for retirement income planning reasons. You may have been asked if you'd rather have growth or income. I'm here to tell you you're gonna love growth of income. Thanks for joining us. Thanks for listening.

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