Until very recently, I’d never invested in individual stocks of public companies. I didn’t really understand what that even meant. My first exposure to the concept was when I accidentally watched an interview of David Gardner, the co-founder of the Motley Fool, a stock-picking service of which I am a member (a review is coming eventually, in short, join!). What struck me about David was how upbeat and optimistic he was about investing. He talked about investing in the future world that you wanted to see. Invest in companies that share your values and cheer on those companies as they succeed in making the world a different (and hopefully better) place.
From a fairly young age, I’ve had a fascination with economics and the operations of businesses. This isn’t terribly surprising since I grew up working for a small business, my father’s beef and grain farm. Unfortunately, learning about economics can also leave you a bit jaded and cynical about the world. Shady business practices or ethical dilemmas can leave an unsavory taste in your mouth. Unencumbered, this can very easily lead to someone becoming a pessimist for life.
This leads to the significant change that has occurred in my past year of investing in individual companies. I’ve learned to be an optimist about the companies I own and have great pride and joy in the services they offer to the world. Not only this, but I’ve also been able to see more clearly how these companies work to make the world a better place rather than focusing on the potential problems they create in the world. If I don’t believe a company makes the world better, I don’t have to invest in it. This is SO important to me.
How It Makes Me Happier
I get to invest in companies I deeply care about and align with my passions and interests. As most people know, I’m a huge Star Wars fan. I grew up with the prequels and always felt very connected to Anakin Skywalker. It shouldn’t surprise you that the first company I ever bought was Disney (Ticker: DIS). Now, not only do I get to love Star Wars, but I also own a tiny portion of it.
Investing in public companies has even improved my marriage. I never used to understand why my wife spent so much time on Pinterest (PINS). I still don’t know for sure, but it honestly doesn’t matter anymore. Ever since I bought shares of Pinterest and Etsy (ETSY), I am actually excited to see that my wife is online looking for unique ways to make the world a more beautiful place. It makes me happy to know that there are women all over the world doing the same thing right at this moment.
Seeing companies I own out in the world has the effect of lifting my spirits EVERY SINGLE TIME. Driving past Tractor Supply (TSCO) makes me giddy. Seeing a Tesla (TSLA) in front of me on the highway gives me a sense of wonder about the life of owning an electric vehicle. I even get interested and excited about trucking as I see an Old Dominion (ODFL) truck and trailer on the road just about every day on my way home from work. Every time I see solar panels I get to ask myself the question, “Did SolarEdge Technologies (SEDG) help bring that source of energy to life?”
I could go on and on until you knew every single holding in my portfolio. It always makes me happy seeing the companies I own out in the world providing a product and service that someone else needs and wants.
How It Makes Me More Optimistic
As I learn more about businesses, I can actually see all the good they do in the world. It is not only about money. As these companies grow, they help investors, but they also help people.
Where would small businesses be right now without Shopify (SHOP)? Many more would be out of business. Shopify is not a company a lot of people know about even though it’s a $116 billion company as of this writing. One of their biggest goals is to help people sell goods online. Shopify’s tools allowed thousands of small businesses to build online stores and stay “open” during the Covid-19 shutdowns. This company exists because ONE person wanted to sell skateboards online and couldn’t find a good platform to use. This one idea helped thousands of businesses get online stores.
As I think about the companies I own, I can’t help but get more and more optimistic about the world. How invested can you really be if you expect economic disaster and the collapse of society as we know it? Being invested almost requires you to have an optimistic view of the future, warts and all. None of these companies are perfect, but they do provide products and services that I want to be optimistic about.
Who Knew?
Who knew that investing in individual companies would make me a happier and more optimistic person? I certainly did not. Yet, I can honestly say that every day I can get joy out where I’ve been able to invest some money. Instead of having an endlessly pessimistic view on economics, I am actually excited about what good companies are offering to the world. Every day I see these companies in my life and every day I can rejoice in how they help the world. It is true that the world of business can be a depressing place, but only if you focus on the dark side of everything. Investing in individual public companies has forced me to find more of the good. This optimism and happiness is exactly what I need in my life and in my investing.