Weekly Nugget of Wisdom #33

If you think investing is risky, wait until they hand you the bill for not investing

Welcome to another Nugget of Wisdom! A free post I send out once a week. These are designed to be short and sweet, a quick read to (hopefully) impart some sort of wisdom, or at the very least to get you thinking about something interesting.

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If you think investing is risky, wait until they hand you the bill for not investing

I came across a video clip today by one of my favourite inspirational and motivational speakers, Jim Rohn. In it, he talks about how everything in life is risky, and it made me think about how most people think about risk all the wrong way.

One line in particular stands out to me:

If you think investing is risky, wait until they hand you the bill for not investing.

What a line.

Most people think investing in the stock market is risky, investing in crypto is risky, etc. but the real risk is NOT investing in long term assets. The real risk is doing nothing and sitting on a pile of cash under your mattress that is quietly debasing away.

This concept of risk-by-omission applies to almost everything in life.

The risk in not working out and taking care of your body is an early death, or at the very least, an unpleasant last decade or two of your life.

The risk in not starting the business you keep thinking about is waking up at 65 with the sinking feeling that you never even tried.

The risk in not learning a new skill is finding yourself replaced by someone who did.

The risk in not improving your relationships is discovering, a little too late, that you’ve lost some of the best people you’ve ever known because you were lazy, or couldn’t work on a bit of self improvement.

And when it comes to crypto specifically, the risk in ignoring the space isn’t “missing out on the next 10x”. It’s the risk of slowly losing purchasing power, freedom, and optionality while the financial system evolves around you.

We tend to obsess over the risks of action because they’re visible, measurable, and easy to imagine. The risks of inaction are invisible and slow until suddenly they’re not.

One way I like to think about it is this:

Every choice compounds.

Not choosing also compounds.

The question is simply: which direction are you compounding in? (as a bonus, read my previous letter on compound interest).

You don’t need to overhaul your life. You don’t need to go all-in on anything. You don’t need to own meme coins, or penny stocks, or leverage trade.

But you do need to be aware that “playing it safe” (especially playing it “too” safe) is often the riskiest strategy of all.

There’s risk in absolutely everything. Every decision. Even tiny decisions, made consistently, tilt the odds.

Your job is to tilt them in your favour.

Thanks for reading! In case you missed it, check out Monday’s post below 👇