Life is surprisingly simple, when you think about how much complexity we build around it. At the end of the day, everyone wants the same thing. That is of course also the exact source of the problem.
You want a small cottage in the countryside, built over a century ago by craftsmen out of brick, straw and wood. You want to have a goat and some chickens or ducks. You want to grow some sunchokes and other vegetables.
You want a wife or a husband and you want to have three young children together before you turn thirty. Once a week you want some guy to tell you what the meaning of life is and what happens after death. You want to be able to genuinely believe what that guy has to say.
You want to raise your children to be happy and healthy, you want them to marry and have children of their own and then you want to draw out your last breath in your own bed, with your family at your side.
That’s really all there is to it. That’s how simple it is. You’re a slave of your genes and happiness is the reward that you get for doing the things that brought those genes into existence in the first place.
Everyone already knows this deep down. That’s why they get so angry at you when you point it out, because it’s not really available to them. In our society you go to school, then you sign up for college, you graduate with a huge debt and then you get to live in a big city in a small apartment, paying off the debt you incurred.
Generally speaking, if you live in the Western world you can’t even afford to have children anymore. People won’t say “I’m too poor to have children”! What you generally get instead are neurotic vegan women in their late thirties, who hold emotional diatribes where they complain about how global warming makes them afraid of having kids.
If you’re in your twenties now, you’re generally living in a flat with a bunch of randos you call “roommates”, or you’re living with your parents. You literally don’t own a room where a child could sleep.
This is what you want.
This is what you got.
This is what you want.
This is what you got.
I could go on like this forever, but it’s kind of in poor taste by being so obvious and I have Tumblr for pictures like this. Of dreamy cottages with flowery meadows that is, not of bearded lesbians in skirts.
You wanted to go mushroom hunting in the forest at dusk, before returning home to your cottage, throwing some logs on the fire and sitting down in your rocking chair as you drink a cup of homemade valerian lavender tea.
Instead you’re staring at a screen. You share your walls with your neighbors and work at some IT company with “solutions” in its name and you’re horrified to realize your colleagues truly identify with the bullshit that constitutes their job.
Sorry, I’m just not buying any of this nonsense. I don’t believe people who genuinely like sitting at a desk and coding accountancy software genuinely exist. Nobody likes doing that. Nobody likes doing a customer service support job. Nobody likes being a social media specialist. Honestly, nobody likes any of this nonsense.
The world would be a much better place, if people could just say out loud “I hate this stuff, but I grew up without a nest egg and we live in a densely populated post-industrial service economy on a planet with eight billion people, where most people think they’ll drop dead if they engage in actual physical social interaction, so this is what I spend my time doing”. Unfortunately when you say that out loud, you’ll simply enter the next layer of hell, unemployment.
You’re not designed for any of this stuff. You’re constantly overstimulated, to the point where you don’t even have the attention span anymore to read a book. Sexual overstimulation is the same principle. When you see some fat guy with a beard in a woman’s dress on a lesbian dating site, do you think that I’m a transphobe who doesn’t recognize that this is really just a person with a structural difference in some obscure part of his brain that turned him into a woman in a man’s body? Or could it be that this is some overstimulated freak who watched too much pornography and developed a strange fetish?
As the world grows more efficient and rational, it grows uglier. But people don’t seem to notice this, or just don’t care, because their minds have grown ugly too. I want to live in a world where witches gather in the dark forest under pale moonlight to worship the devil. Or at the bare minimum, I want to live in a world where people still believe such things happen.
You’re born into this world without owning anything. Then at eighteen you sign up for debt. You enter a debt, that allows you to start working, to earn the money that you need to survive in this world. Your dreams? They can wait until you’re 65. By that time, you will have forgotten what they were.
In my case, I’m now kind of, sort of, halfway to the point where you can skip out on that whole process. If you have half a million Euro, you have enough money to never need to work again if you don’t want to. It won’t be luxurious, but it can be done. Now I just have to learn to say no. Oddly enough, perhaps the biggest problem I face is the social pressure, from my environment. People really don’t want you to drop out, even if you can afford to drop out.
I would say you’re genuinely done when you have a million euro. You spend half a million to buy a house far away from the normies, the other half is a portfolio of cheap stocks earning around 20% a year, enabling you to spend 90% of your wake hours doing things not related to earning money. You do this for about ten years, then you throw the money into a value ETF or you buy some real estate, so that when you drop dead your wife doesn’t have to worry about anything and your kids don’t have to pick up the phone and talk to the customers when they’re adults themselves.
Me, I’m still in that awkward zone where you probably reached net worth escape velocity, but can’t be entirely sure of it. If I were a twenty year old guy without any real savings today, the road I would take wouldn’t be cryptocurrency, as most of them seem to think. The road I would take would be investing in websites. You spend a few years working hard, then you spend the rest of your life hardly working. Some basic explanation can be found here.
Of course I know the counter-argument to what I’m saying here: There are people who genuinely like their boring cubicle jobs. If that’s the case, my counter-argument would be that your job eroded your personality. I know that’s true for me. I’m more boring than I was five years ago. Your personality changes to adjust to your external environment. If your environment consists of staring at a screen, your personality changes to reflect that.
What I’m explaining here, is what I wish someone had explained to me when I was a teenager. People don’t explain this however, because they have higher hopes for you: They want you to become a bigshot in the adult world, as opposed to becoming someone who figures out how to stop working as soon as possible.
I recommend against this. Don’t go to college. Yes, we all wanted to be paleontologists and astronauts as children, but statistically speaking you’ll just end up in a cubicle. Live with your parents. Find some stupid job you can do from home, ideally on your own without a boss. Throw your savings into something that will let you stop working before you hit thirty.
That’s it. That’s really all there is to it.
I would argue that the only way we will ever truly escape this hell for good is by actively resisting it. If growth is allowed to continue, eventually the day will come when there won’t be any cracks left through which to exit society anymore (or, god forbid, there will be nothing left to even return to). You’re right though – there is nothing good about what we are doing to the world.
>If growth is allowed to continue, eventually the day will come when there won’t be any cracks left through which to exit society anymore (or, god forbid, there will be nothing left to even return to).
Yes, but in a world with seven billion people, my chances of putting that process to an end are a rounding error.
It’s much better to just gradually dissociate. The gradual part is important. If I had said at age 20 “I’m dropping out”, at age thirty I would have been a crust punk in Washington state with a bone through my nose begging on the street for change.
The best option is to just figure out how to buy your share from the system, some place where you will be left alone. I think a young man can do that in ten years.
Now, tell us more about those cheap stocks with 20% return.
Well, if you want to pump my bags for me, I’m not stopping you. My biggest two positions right now are BUILD KING HOLDINGS LTD and ZHONG AO HOME GROUP LTD. However, my main recommendation to people would be TOKYO TEKKO CO., LTD.
I will have to make a new post out of this at some point, it took me waaay too long to write, but anyway, here’s what you do.
1. You look for regions where the stock market is unusually cheap, compared to historical trends. Don’t bother looking for cheap stocks in the United States, everyone is looking there. Take a look at some of the following places: United Kingdom, Singapore, Hong Kong and Japan. If your broker will let you, India and South Korea are worth looking at too.
2. You’re a small investor, rather than an institutional guy. This gives you a huuuuuuuuuuuuuuuge advantage. Don’t bother looking at companies with a market capitalization above 1 billion US dollar. Those are typically efficiently priced. The cheap stuff has a small market cap. Often the cheap stuff is relatively illiquid too, so be prepared for the reality that it can take you a few days to get rid of a position.
So region is your first filter, so that you have the market cycle working in your favor, market cap is your second filter, so that you have the small cap advantage working in your favor. Now it’s up to you, there are a number of different strategies worth pursuing.
===========1. The low price to book strategy.===========
Look at the UK, filter on debt/equity below 33% and price/book between 0.4 (to filter out the bullshit) and 0.8. Now just start reading balance sheets. It doesn’t take a genius.
===========2. Negative enterprise value.===========
It’s easy to filter on companies that have more cash on their balance sheet than their market cap. That’s buying a 100 dollar safe and finding 200 dollar inside. The harder part is figuring out which of these companies are scams.
Here are some basic indicators:
1. Japan? Probably not a scam, Japan is just cheap.
2. Hong Kong? Anything is possible. That’s why most American boomers don’t touch Hong Kong stocks altogether, which means the diamonds don’t get picked out of the turds either.
Some basic indicators that can help you along for Hong Kong:
-1. Pays a dividend? Probably safe.
-2. Recently changed their auditor, delay in publishing their results? Don’t touch it.
-3. Insiders recently bought? That’s an indicator they’re probably going to start doing something with the cash on their balance sheet.
-4. Part of the Enigma network? Don’t touch it.
===========3. Good cheap companies.===========
This is my favorite strategy to recommend, because it’s probably the safest and doesn’t really take much experience.
I’ll explain the whole process.
1. Debt/Equity below 33% (filters out companies that look cheap to you but are actually just approaching bankruptcy).
2. Price to book between 0.2 (filtering out some bullshit) and 0.9.
3. Price to Sales between 0.1 (filtering out some more bullshit) and 0.9.
4. Enterprise Value/EBITDA below 3.
5. Pays some dividend (helps filter out scams).
6. 1 Year revenue growth between -10% and 50%. This filters out the weird companies that I don’t understand, which have hugely inconsistent revenue.
Now you get a list of companies. A lot of them are probably construction companies in Asia, but that’s fine.
From here on it’s up to you. Research the companies. Does revenue look to be steadily growing? Great!
Do you like a company you found?
Two last checks:
1. Take the company’s Price to Sales ratio. Compare the company’s price to Sales ratio to other companies in its industry. Does it look favorable? You’re probably dealing with a legitimately cheap company.
2. Look the company up in the news (duh). Sometimes it turns out there’s a scandal, perhaps the company recently had to pay a fine. Markets overreact to bad news however, so a scandal doesn’t have to mean you can’t buy the company, I leave that up to your discretion.
Also, learn to toy around with these filters. Maybe you want to buy growing companies at a fair price, rather than just buying dirt cheap companies going nowhere. That would require tweaking the filters.
You guessed it: This takes some time. You’re now a stock market participant, helping to guide along the efficient flow of capital. I spend some time almost daily, checking for new companies, making sure the companies I already own don’t suddenly have weird shenanigans going on.
You’re still going to be wrong sometimes. That’s why you don’t buy one company, you buy at least five of them. If you don’t have at least 100k to invest, I’d say it’s not really worth your time and effort, just buy a value ETF and let a professional do it for you.
thnx, will give it a look …
My only complaint against this article is the assertion that everyone wants what you describe.
In reality, since equality is not true, different people want different things, which is why your article will only resonate with the most mentally sound 5% of racial aryans.
Everyone else wants the retardation they so gleefully create, and it isn’t a cope, it’s the ugliness of their souls leaking out into reality. This is why God created a place called “Hell,” creatures such as that must be carefully contained there lest they ruin what we call “Heaven.”
It seems like everyone online works in a cubicle. I dont.I work i construction. Its not great but no HR, free “workout”. I will probably die off asbestos lung but whatever