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Wealth is the Control of Time

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Summary

This article discusses the concept of true wealth, which is the control of time. Money is a battery for time and energy, and is typically measured in terms of money. The article looks at John Maynard Keynes' essay written in 1930 in which he predicted that people would have solved the economic problem by the year 2030. It looks at the accomplishments made since then, such as the compounding of interest and technology, but also why his prediction hasn't come true. The article then looks at the current situation and what we can do to build true intergenerational wealth. It argues that the best way to do this is through the efficient allocation and patient compounding of capital over a multi-generational timeframe. It concludes with an exhortation to those of us pursuing the accumulation of money to live wisely and not neglect the precious little things in life.

Q&As

What does the article argue is the definition of true wealth?
The article argues that true wealth is ultimately about controlling one's time.

How did John Maynard Keynes predict society would be by 2030?
John Maynard Keynes predicted that humans would have solved the economic problem by 2030, enabled by the power of compound interest and efficiencies brought about by technology, and that humans would be free to spend time on nobler tasks than the accumulation of money and a 15-hour workweek would suffice to scratch the itch for those who still felt compelled to work.

What did Keynes think would control the rate at which humans solve the economic problem?
Keynes thought that four things would control the rate at which humans solve the economic problem: the power to control population, the determination to avoid wars and civil dissensions, the willingness to entrust to science the direction of those matters which are properly the concern of science, and the rate of accumulation as fixed by the margin between our production and our consumption.

What does the author say is the best way to provide a better future for ourselves and our kids?
The author believes that the way to provide a better future for ourselves and our kids is through the efficient allocation and patient compounding of capital over a multi-generational timeframe.

What is the author's exhortation to those pursuing the accumulation of money?
The author's exhortation to those pursuing the accumulation of money is to avoid a miserly mindset and to be aware that life is a balancing act of priorities easily tipped out of whack.

AI Comments

👍 This article offers a great perspective on wealth and how it relates to time and how it has changed throughout the years. It also offers an interesting idea on the importance of investing in a multi-generational timeframe.

👎 This article is too wordy and could be condensed to make its point more succinctly. It also offers an overly optimistic view of the future of wealth and investing without acknowledging the current economic situation.

AI Discussion

Me: It's called "Wealth is the Control of Time" and it's about the case for multi-generational investing. It's written by Six Bravo, the authors of Special Situation Investing. They talk about how money is a battery for time and energy and that true wealth is about controlling one's time. They also talk about how John Maynard Keynes predicted that, by 2030, humans would have solved the economic problem and would be able to choose how to spend their time. But, they argue, that hasn't turned out to be the case. They believe that the only way to solve the economic problem today is through technological efficiencies and the compounding of capital over a multi-generational timeframe.

Friend: Wow, that's really interesting. It sounds like a great way to ensure financial freedom for future generations. But, it seems like it's going to be a hard road to get there. Do you think it's achievable?

Me: I think it's definitely achievable. It will just take a lot of hard work and commitment to saving and investing. But I think it's worth it in the long run. It's a way to ensure that our children and grandchildren have greater opportunities in life. That's really what it's all about.

Action items

Research and understand the concept of compounding interest and how it can be used to build wealth over time.
Consider investing in a portfolio of long-term value stocks with the mindset of building a portfolio to pass on to future generations.
Balance the pursuit of financial freedom with the appreciation of life’s little moments.

Technical terms

Wealth: A large amount of money, property, or other valuable possessions.
Control of Time: The ability to manage one's time and energy in order to achieve desired goals.
Multi-generational Investing: Investing with the intention of passing on the benefits to future generations.
Compound Interest: Interest that is calculated on the initial principal and also on the accumulated interest of previous periods.
Fiat Currency: Money that is declared legal tender by a government, but is not backed by a physical commodity.
Entrepreneurship: The process of creating or taking over a business and running it as an individual or as a group.
Value Investing: A strategy that involves buying stocks that are undervalued by the market.
High-turnover Portfolios: A portfolio that has a high rate of buying and selling of investments.
Long-term Value Investing: A strategy that involves buying stocks that are undervalued by the market and holding them for a long period of time.