If you own a business, you know how hard it is to hire good people. Heck, it’s difficult to hire someone to mow your lawn these days. The labor market is tight. Good humans are hard to find. With that in mind, I’m going to tell you something amazing.
I have some of the brightest minds in the world working for me today.
And my manager role is almost completely passive. I’ve never spoken to any of my workers. I’ve never even met any of them.
It may further surprise you to hear their names because you’re certainly familiar with some of them. They are modern visionaries like Jeff Bezos and Mary Barra.
The answer is simple:
I buy stocks.
What are you buying when you buy a stock? You’re buying part of a company. And there is a lot that comes with that. If you buy Apple’s stock ($AAPL), you’re buying a piece of Apple’s:
- buildings and other physical assets
- intellectual property (IP)
- profits (Apple shares them with a quarterly dividend)
And if I own Apple, I’ve hired Tim Cook to work for me. I expect him to manage the Donut Building, IP, and product lines. Tim Cook is a smart guy who works very hard. I would never want his job. Heck, I don’t want any normal job ever again. However, the stock market allows me to benefit from the hard work and brilliance of Mr. Cook.
Stocks And Funds And Plants, Oh My!
In the past, I bought individual stocks like Alphabet, Amazon, Facebook, and Tesla. Through those purchases, I’ve hired Larry Page, Sergey Brin, Jeff Bezos, Mark Zuckerberg, and Elon Musk. You’ve heard of them, right?
Now, I buy mostly index funds which automatically manage my workers. Vanguard’s Total Stock Market Fund, VTSAX, automatically promotes and demotes. Since VTSAX is market-weighted, if one of my workers outperforms her peers, VTSAX increases my allocation of her company. If the opposite happens, VTSAX decreases the allocation. I quite like the elegant simplicity of this arrangement. I don’t have to pay attention to the day-to-day management decisions of Mary Barra or Tim Cook. And for this crazy-good, hyper-efficient management, VTSAX charges me a fee of only .04%. If I give VTSAX $1,000,000 to manage, I pay $400 per year in fees. That’s an incredible value. Take my money VTSAX. If you’re still unconvinced, JL Collins explains it far better than I ever could in The SImple Path To Wealth.
Before I wrote this post, I spent the morning working in my yard. I also studied my electrical panel to plan for solar panels. The plants will make the yard look better and the solar panels will eliminate our utility bill. This is the work I choose to do.
The work I would not choose is securing supply chains for the next iPhone or figuring out how to fend Tesla off. Thank you Tim Cook and Mary Barra (GM) for taking care of that.
It gives me great satisfaction to know that some of the most brilliant leaders today are on my payroll. I get to pursue what I want and they fund it. They’re toiling away in an office somewhere while I practice Spanish this afternoon. Life is good.
More 1500 Days!!!
You can also find me (and the dinosaurs) at:
Mile High FI podcast:
- EconoMe: Hey look, I’m speaking at EconoMe later this year!
- Facebook: Facebook group and page
- YouTube: My channel is mostly devoted to home improvement, but I have some other material coming up soon too.
- Instagram: Pretty pictures of dinosaurs, sunsets, and nail guns!
- Twitter: Spontaneous, often insane, ramblings
- Coworking space: On the surface, MMM HQ is a coworking space. Look a little deeper and you’ll see that we’re really building community. The members of MMM HQ are some of the finest people I know.
Other resources I like:
- Camp FIs are amazingly fun! I hope to attend Rocky Mountain and Joshua Tree this year. See you there?
- Need to learn how to invest? The Simple Path to Wealth is all you need.
- New to FIRE? Need some FIREy guidance? Check out Fiology and the accompanying workbook!
Join the 10s who have signed up already!
Subscribing will improve your life in incredible ways*.
*Only if your life is pretty bad to begin with.