March 25, 2022

The Principles of a Portfolio | Part I — Time to Compound


Hello and thank you for being here. In the next few episodes, we’re going to spend a little time together. Exploring the principles of a well-constructed portfolio. Rising above the noise and focusing on principles, techniques, and lesson to create the greatest version of your own wealth. But first, let’s settle our shoulders and take that deep calming breath. 

I invite you to focus on the most under-appreciated ingredient in successful investing, time. Photosynthesis is the process plants use to turn the energy of the sun into nourishment, a fundamental element of life and growth. For money, time is that fundamental element. Time is what allows money to be nurtured, to propagate and to compound. Without time, money stands still in darkness.    

To change seasons; think of a snowball rolling downhill. You start the snowball rolling in the right direction, and it expands all on its own. It's time spent rolling that evolves snowflake to snowball, and snowball to avalanche. 

Snow, plants, or money don’t require consistent observation. If fact if you watch too closely, if you count too often, you will run out of patience before the magic can take hold.  

If you handle the snowball, hold it, move it, it will melt and disappear. Money is the same, the more you handle it, the less you have. We oversteer when it comes to money because we desire immediacy. But commerce like nature is too efficient for that.

Take a moment to think about how you hold your money? Where have you placed it? In a place where it can flourish? Or are you oversteering like the melting snowball? 

We all worry when we have cash that now isn’t the RIGHT time. Research shows that you have a 95% chance of not getting the best price when you invest cash into the market. No matter how smart you are, at some point you are going to see prices that are lower than the price you paid. A reality of the volatility in markets. 

While emotionally, devastating. Mathematically when it comes to long term returns, what matters, the difference of not being perfect is insignificant.  Long-term investing will leave you with this huge, beautiful snowball of returns and perfection even if it was possible would just add a few insignificant snowflakes.

Except imperfection as part of the process: Given time is what matters most, why waste it: get invested, stay invested, and remember wealth is a state of mind, not a number.


The ideas in these episodes are not mine alone and are based on my learning of time-tested principles.  I am grateful for the work that has been done by people like Naval Ravikant, Eckhart Tolle, James Clear, Morgan Housel, Nick Maggiulli, Brian Portnoy, Derek Sivers, Carl Richards, Cameron Passmore, Benjamin Felix, Michael Kitces, and many others.
The Almanack of Naval Ravikant – Eric Jorgenson
Why Market Timing Can be So Appealing – Nick Maggiulli


This content is for informational purposes only and should not be construed as advice or recommendation. Past performance does not guarantee future results. Please consult a licensed financial professional before making any investment decisions.