• Tom Grady

The money delusion

Updated: Jul 20, 2019

The belief that money has value is a figment of our collective imagination which is why you need to swap it for real assets. Those assets can be almost anything; shares of companies (equities), loans (Fixed Income), property (real estate), commodities or anything else that will hold its value over time or generate an income.

The aim of investing is to make sure the assets you own will either retain or increase their value over time. I measure value in terms of the benefit I derive from that asset, not necessarily the current price of the asset. This is why I don't like gold, bitcoin or other assets that have limited inherent value. It's entirely different to invest in a company that produces products and services that people want and therefore earns money, than it is to invest in an asset that you simply believe someone will pay more for in the future (gold, crypto currencies, commodities). This doesn't mean you can't make money from those assets but it typically involves predicting how people's behaviour will change in future rather than simply wait for a company to earn more money.

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