{"id":2470,"date":"2013-03-15T14:30:51","date_gmt":"2013-03-15T12:30:51","guid":{"rendered":"https:\/\/clusterfamilyoffice.com\/blog\/?p=2470"},"modified":"2013-03-15T14:30:51","modified_gmt":"2013-03-15T12:30:51","slug":"medicos-abogados-economistas-o-empresarios-todos-somos-inversores","status":"publish","type":"post","link":"https:\/\/clusterfamilyoffice.com\/en\/medicos-abogados-economistas-o-empresarios-todos-somos-inversores\/","title":{"rendered":"Doctors, lawyers, economists or businesspeople: we are all investors."},"content":{"rendered":"

\"\"It seems that the world is divided between those who save and those who don\u2019t. But many of those who claim to live from hand to mouth do, at some point in their lives (mostly in middle age) and despite the hardships of this crisis, tend to put a little money aside for their old age or for an uncertain future. However, most of these forward-thinking people have never considered themselves investors, but simply savers. Warren Buffett said that\u00a0Investing means spending less today so that we can spend more in the future<\/strong>, and he hit the nail on the head, as he almost always does.<\/p>\n

What most savers don\u2019t realise is that their money, simply by being deposited in a bank, is already invested, even if in the most pointless way,reckless<\/strong><\/a>, of little benefit and fiscally inefficient. That\u2019s right,\u00a0Money is an asset with an intrinsic and immediate opportunity cost<\/strong>. In other words, simply holding on to that money must generate more money; otherwise, one incurs a glaring opportunity cost. Inflation will prove this to us in a few years\u2019 time, by which point that opportunity cost will already be irrecoverable.<\/p>\n

But why do we say that money has an immediate opportunity cost? Because in the capitalist, market-based system in which virtually the entire planet lives (with the exception of North Korea and Cuba), lending our money to third parties who will potentially start businesses and create wealth comes at a price that we must charge. A reward we have earned simply by lending our money to others \u2013 a raw material with which they, in turn, will seek to generate further wealth. For let us not forget that wealth is not only transformed (it changes hands), but is also created and destroyed, unlike energy and matter. And anyone who doesn\u2019t believe this should ask the investors who bought shares in any bank or property in Spain over the last five years\u2026<\/p>\n

The mere act of depositing our money into our bank account makes it available to third parties so that they can create wealth. And so, this simple act of keeping our savings in the bank turns us into investors, even without realising it. That is why,\u00a0All savers would do well to realise that anyone with a little spare cash should educate themselves and seek advice, just like any self-respecting investor.<\/strong><\/p>\n

What\u2019s more, it is absurd to see how doctors, lawyers or even economists and other professionals and\u00a0businesspeople<\/strong><\/a>, they prioritise their education and studies in order to secure brilliant careers. These career paths end up generating, over the years, highly attractive fortunes; however, their owners have never been properly prepared or advised on how to manage them. Simply because they have been so single-mindedly focused on achieving the greatest possible success in their professions that they have regarded training and seeking the best advice on managing the assets they have earned through the sweat of their brow as superfluous. For them, the only thing that matters is\u00a0to win<\/strong> money through their professional activities, rather than through the\u00a0tenure<\/strong> (investment) of money for its own sake.\u00a0They fail to recognise the opportunity cost that such ownership inherently and immediately entails.<\/strong> A grave mistake.<\/p>\n

Most of these surgeons, lawyers or successful businesspeople hand over control of their money \u2013 and therefore of their investments \u2013 to mere white-collar or even grey-collar bankers, whose\u00a0mediocrity<\/strong><\/a> it is surpassed only by its\u00a0lack of ethics and honesty<\/strong><\/a>. The results are usually opportunity costs that are sky-high, if not downright outrageous.<\/p>\n

What, then, is the point of continuing to earn money in their professions if they take on tremendous and unjustifiable risks and opportunity costs when managing their investments? Not only is there no point, but in many cases it also leads to tragic outcomes. It is very common to see eminent doctors and professionals who have made fortunes in their practices reach retirement age \u2013 and thus the end of their professional earnings \u2013 and find themselves doing the maths to ensure their savings will last until the end of their days without any significant decline in their standard of living (or that of their children). And the same is true of businesspeople, lawyers and other professionals, whether they have been more or less successful.<\/p>\n

But in all these cases, the outcome should have been very different.\u00a0A comfortable income earned over many years of professional life \u2013 and therefore a considerable and sustained capacity to save \u2013 must necessarily be transformed into assets that generate further income and wealth. On a consistent and growing basis. And this sound management of assets should, over the years, minimise the reliance of these families on professional income. So that, upon reaching old age \u2013 and with it the end of professional earnings \u2013 this does not in any way mean a cessation of the family\u2019s income, nor any deterioration in their quality of life, but quite the opposite.<\/strong><\/p>\n

Whatever our vocation, we must never forget that, as soon as we achieve a certain degree of success in it, we will accumulate savings which we will need to manage competently. To this end, we have two options, which must also be complementary: to educate ourselves as best we can in wealth management, guided by the world\u2019s finest value investors; and, secondly, to strive constantly to find the best advice to guide us throughout our entire investment life. Advice that must not mislead us or steer us away from the path of value investing \u2013 that is, the pursuit of creating (corporate) value in our investments. For it should be clear to everyone that, for better or worse, the long-term management of the wealth we have earned will be far more decisive for our family\u2019s well-being and that of future generations than our professional success.<\/p>","protected":false},"excerpt":{"rendered":"

Parece que el mundo se divide entre las personas que ahorran y las que no lo hacen. Pero muchos de los que dicen vivir al d\u00eda, en alg\u00fan momento de sus vidas (mayoritariamente en su madurez) y con el permiso de los azotes de esta crisis, tienden a ahorrar alg\u00fan dinerito para su vejez o […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[57,39,40,52,37,48,55],"tags":[],"class_list":["post-2470","post","type-post","status-publish","format-standard","hentry","category-funcionamiento-family-office","category-crear-mi-propio-family-offices","category-gestion-financiera","category-asesoramiento-patrimonial-multi-family-office","category-reflexion","category-asesoramiento-patrimonial-multi-family-office-crear-mi-propio-family-offices","category-necesito-un-family-office"],"_links":{"self":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/2470","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/comments?post=2470"}],"version-history":[{"count":0,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/2470\/revisions"}],"wp:attachment":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/media?parent=2470"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/categories?post=2470"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/tags?post=2470"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}