I’m writing out a famous ad by hand for Copy Hour titled, “About This Stock And Bond Business…”
The ad essentially just provides a crash course on what stocks and bonds are, and how the whole business works.
Here’s an excerpt:
“What are common stocks worth? That depends on what people are willing to pay for them…(which is) largely determined by one factor – earnings. That includes what the company has earned (its past record), what it is earning (its present state of health), and what it might earn (its prospects for the future).”
This got me thinking: why don’t we apply and evaluate most everything in our lives based on these factors?
Evaluating a business opportunity based on past, present, and future factors is a no brainer right? You wouldn’t think so based on what decisions people ultimately make. We always try to think intrinsically – what’s my passion? If your passion is VCR repair, then you’re shit out of luck.
Let’s run a VCR repair business through the past, present, future test:
- Past earnings? Great.
- Current earnings? Shit.
- Future earnings? Dog shit.
This applies to so much more than business (just like my last post on the 6k System For Attracting Millions & Models).
Let’s evaluate our current physical shape. Are we happy with it? If no, then let’s look at the workout plan we’re using and the results it has produced.
- Past workout results? OK. Gained some muscle.
- Current workout results? Not great. Stalled.
- Future results? Probably not great.
The next step would be evaluate the diet plan based on past, present, and future. With every decision there are multiple factors to run through this test.
(If you need a workout plan that produces results, you know what I recommend: Hollywood Physique)
Let’s evaluate a girl we’re interested in dating. And let’s say we’re at the point where we’re looking for a woman to mother our children.
We probably have some set criteria that we want in that woman. We’d look at each feature we’d want in this woman and run it through the past, present, and future test.
Let’s say we want a woman who is faithful because we want to be sure we’re only providing for children that are ours.
- Past faithfulness? Cheated on her ex boyfriend with you.
- Current faithfulness? Faithful.
- Future faithfulness? Unsure. Probably all good.
Now, maybe this girl has a bright future of faithfulness. What you need to determine is how predictive you think past actions are of future actions. There’s a lot to weigh.
But can you afford NOT to do this?
Are You Being Intelligent?
The ad goes on to say, looking at these factors is something the “intelligent” investor does. Why don’t we expect ourselves, or force ourselves, to be “intelligent” in our life choices? Life is pretty important right?