This newsletter was inspired by the manic trading action in GameStop , ticker GME.
For those not living in the US, the short was heavily shorted, a bunch of small traders got together to drive the price from 13 $ to 430$. Rags to riches?
Yes, a few people made a lot of money.
But someone needs to be the bag holder and while Wall Street did take a hit , it was mainly small retail investors who lost their shirt as the stock plummeted to 90$. Gravity always prevails.
For reasons unbeknownst to me, several people reached out to get my opinion on said stock.
My answer was: Who is one of the most successful investor of all times?
Warren Buffet. What does he buy? Coca Cola. Bank of America. Colgate. The world’s most boring stocks. Why? Because they work.
The fitness world is essentially the same. The people with the best physiques on the planet do the same boring things every day for a decade or longer in order to look that way. You can see why this is a hard sell to the public, just like investing in AMEX or Banc of America. ” I am only making 3% a year??? But GME is up 15000%!!
And I saw this guy on Fox News who mortgaged his house and made millions”
Yes, and thousands lost their shirt.
Why do people behave this way?
Welcome to the United States of Entitlement. We have entered a time where nobody wants to save money /get a coach or train hard, eat right because ” I saw this thing on Instagram” which will get me in shape quickly/ make me rich.
Or to quote my idol Homer Simpson ” All quick rich schemes so far have failed, but this scheme will make me rich. And quick!”
Now certainly do I have a bias but the idea of needing some form of coaching to succeed is not that outrageous, just like you should have someone qualified handling your investments.
Developing a physique is something that requires discipline, proper form, professional feedback . Hardly anyone would buy a piano without booking some sessions (ok, maybe young Wolfgang Amadeus)
So listen to the geeks: Warren for more $, Maik for more muscles!