The single best investing idea is investing in your own earning power.1
While stocks, crypto, and real estate get all the attention, they rarely outperform the return on investment (ROI) of learning a high-value skill.
Warren Buffett often says that if you are the best at what you do, you don't need to worry about the value of the dollar or inflation.2 "The most important investment you can make is in yourself."3
Why this beats the stock market
The Returns are Higher4The stock market historically returns about 10% per year.5 If you have $10,000 invested, you make $1,000.But if you spend $500 on a course or book that helps you negotiate a $5,000 raise, you have made a 1,000% return in year one—and that return repeats every single year for the rest of your career.
It is Tax-Free and Crash-Proof6The government cannot tax your skills until you use them to make money. Inflation cannot erode your talent. If the stock market crashes, you still own your ability to produce value.
You Control the AssetWhen you buy a stock, you rely on a CEO you have never met to make good decisions. When you invest in yourself, you are the CEO. You control the effort and the outcome.7
How to execute this strategy
Build "Specific Knowledge": Learn something that is hard to teach. If it can be easily taught in a standard school, it can be easily replaced. Look for skills that combine two different fields (e.g., coding + biology, or writing + finance).
Master Communication: You might be the smartest person in the room, but if you cannot explain your ideas clearly, you lose. Public speaking and clear writing act as a multiplier on all your other skills.
Protect the Machine (Health): Your brain and body are the production facility. If you are tired, you produce poor work. Sleep and fitness are financial decisions.
The Math of You vs. The Market
InvestmentCostPotential ReturnRiskS&P 500$1,000$100/year (avg)Market CrashNew Skill$1,000$5,000 - $20,000/year (raise/side income)Wasted Time
