It's only a matter of time
If you are like most people, then every few moments, even as you read this, your mind will travel to the past or to the future.
In this edition:
Investing is a patient pursuit
The time value of money
Invest your limited time
STORY
Good things take time
We always exist in the present. Our bodies persist in the present but our minds turn us into time travellers.
Every day adds layers to our personal histories, deepening our understanding of time’s true worth.
As I accumulate more of a past with the passage of time, I have an increasing awareness of the ‘value’ of time.
Consider a great work of art: its beauty isn’t solely in its immediate impact, but in how its value and meaning grow over the years. Like a timeless piece that becomes more appreciated and valuable as history unfolds, a wise investment grows in worth over time.
It stands the ‘test of time’.
Imagine an artist starting a painting with a single, deliberate stroke. That first mark holds promise, but it is only over countless hours of dedication and refinement that the work transforms into a masterpiece. The artist, like a seasoned traveller poring over old maps, draws upon past experiences to guide the creation of something enduring.
Smart investors travel through time. They study the past not to recreate it, but to gain insight. They also look to the future to try and predict an outcome or result that will get them closer to their goals.
They understand that an appreciation for time can enhance the potential of their decisions in the present.
You see, investing is much more than it's made out to be. But if you aren’t aware of the importance of time horizons in relation to investments, you may get a positive outcome, but “leave money on the table”.
At its core, investing a patient pursuit. It’s not about chasing quick gains, but about setting a foundation for long-term value. Just as an artist doesn’t rush a masterpiece, a smart investor recognizes that true value unfolds gradually, shaped by history and nurtured by time.
The most valuable creations, whether on canvas or in a portfolio, take time to come to life.
Investing is a journey. And it is a game of patience.
This journey, like the journey of art, requires thoughtful, deliberate strokes over time.
Good things take time.
EXPLAINER
Time, value and money
Investing is the act of deploying the resources used to produce value (capital) expecting a beneficial result at some point in the future.
Today, where money is concerned, investing is never far away. The two are inseparable. This is because, by design in our present monetary systems, money no longer holds any intrinsic value in itself.
In the past, money possessed value that was easily agreed on because it took the form of physical assets like gold, silver or copper coins. This was the age of commodity money where money held value because of the inherent worth of the material itself, independent of any government decree.
But today, money takes the form of notes and coins backed by a government that promises to pay the holder some value based on its ability to maintain a stable and robust economy. It is based on a level of trust.
But governments and trust aren’t always synonymous.
Present day economies are more complex and the value of the currencies of all governments adjust daily to local and international events. Locally, inflation is the enemy of money that sits idle because unlike a commodity, the paper itself (or digital entry in an account) holds no value. So simply holding on to it without taking any further action results in a loss of value. A reduction in its worth.
This is why money earned must be invested and not just held and accumulated.
The time value of money is a basic financial concept that holds that money in the present is worth more than the same sum of money to be received in the future. This is true because money that you have right now can be invested and earn a return, thus creating a larger amount of money in the future.
Source: CFIIf you have cash in the present, you must put it to work—whether by earning interest, investing, or using it in ways that create value in the future. Understand this concept as it is crucial in making investment decisions.
NOTES
Time is money
But we act like money is time.
Naval Ravikant said, “Trade money for time, not time for money. You’re going to run out of time first.”
Have you ever paused to think about the phrase, “buying time”?
We use it when we are willing to do or give something in order to be allowed more time. We do this because we know that our time here is limited.
But how is time valued? By what we choose to do with it.
We are constantly making decisions around how to spend our 24 hours. But we know that each day ends and if you haven’t spent it well, then you will always be playing catch up.
Each with the same 24 hours, we know that time is invaluable. But it is easy to waste because it generally takes quite some time to see that you have lost any. Time itself is infinite. Our time is not.
For a species with a life expectancy that’s less than a century, the end is always near.
“Money’s greatest intrinsic value — and this can’t be overstated — is its ability to give you control over your time.” ― Morgan Housel, The Psychology of Money
We say time is money. And just like money, you get to choose how to spend it.
Solve for time and you will solve for money.
Every moment that passes is time spent. All the time you spend is an investment for your future self. How you invest in the present will determine the kind of future you have and therefore, the kind of life you live.
Time is the only currency you spend without ever knowing your balance. Use it wisely.
—Unknown
It’s go time
Like an artist, you know that no work of substance or meaning can be rushed.
Why then, are we so focused on having more and more money, instead of having the patience of an artist, realizing that this life is our masterpiece, our work?
You will leave your money behind. And if you’re investing right, a lot of it. It will be spent quickly when you’re gone. But the mark you leave with the work you created might live on. And if you were like an artist, its value will only increase with time even after you’re gone.
AG
👉 If you enjoyed this edition of Unstructured Notes, click the ❤️ button so more people can discover it & feel free to share it with friends!