Why do you invest in stocks, real estate or any other asset class. Some may scoff at the question, but I am quite serious about this.
As famed venture capitalist Kevin O’Leary often says, “It is to make money”. This is a common answer but i do not believe it to be the absolute and total truth.
Upon much reflection, I have subscribed to the Jim Dines explanation as to why we truly invest and that is for lifestyle!
Whether one wishes to acknowledge it or not, the prime symbol of our world is money just as stone was in Egypt thousands of years ago. Because of this attachment to necessities and the luxuries of living, we invest and often continue to invest in whatever asset classes we believe will give us the lifestyle we desire.
Investing is the difference between Honda or Ferrari, a weekend in the mountains or a month long cruise. Remember this the next time you make your next investment decision.