First and foremost, I've always loved writing. I used to write comics when I was a kid; my hobby was AZ-10 magazines. The world of finance was something that attracted me, but I felt it was very distant. I'd never met anyone who invested in the stock market or anything similar that could introduce me to this world. I made my first forays by taking some online courses a long time ago, but I was always afraid of getting into it with real money.
Until, at some point, I got more serious about learning, and I was fortunate enough to have Fede "Miky" Ivoskus by my side, also pursuing the same goal. We both learned at the same time, although we both arrived at different destinations. Thinking about how I felt when I started and what I learned by reading forums, books, and through hard work made me think... Why don't I do something to make it easier for those who come after me?
That's when the idea for the book emerged, in early 2016, and I began writing The Argentine Pocket Investor. However, it would take more than two years until the book was published. This was because I had a hard time figuring out how to produce it (traditional publishers aren't an option for debut writers like me). When I finally figured out how, I realized it was risky: I had to pay for all the books myself, without knowing if I'd be using them for the barbecue or for something else.
I took risks and took the plunge... I'll never regret it. All the doors that were closed to me showed me that I had to persist. And I finally achieved my ultimate goal: reaching the "break-even" point, that is, recovering my investment. I can't complain about how I achieved it: at the stock exchange, when none other than Claudio Zuchovicki bought me two copies of El Inversor de Bolsillo Argentino (I had intended to give them to him, but he insisted on buying them).
And from there came book two, book three, the mentoring programs, this blog… Time will tell what else, but if there's one thing I want to emphasize, it's: you have to persist; you learn from failure, you don't lose forever. When you give up, that's the only way you lose. And now, the chapter of my liberated book, about none other than education.
Chapter of The Argentine Pocket Investor:
Education…
The best investment?
This is a potentially controversial topic. Many parents spend a large portion of their salaries sending their young children to expensive but renowned kindergartens; other parents send them to free state schools. Some parents pay for English, French, piano, karate, and other classes; others take their children to the park to run. Then, when their children graduate from high school, they send them to renowned universities, giving them the option of delaying the start of their careers. Others let them make their own decisions and, if they want to start working without attending college, they are free to do so. What is the right approach?
Step 1: Define your values
You've probably already taken one side or the other, whether you have children or not. My answer to this question is that, first and foremost, we need to define our values. Of the elements mentioned in the first chapter, which will take priority? Virtually all jobs prioritize one over the other.
For example, think of those billboards hanging on the side of highways or on buildings. Obviously, someone climbs to those heights to put them up. The pay for jobs like this is usually high, but on a bad day, you can have an accident that could mean disability or death. A similar case is that of a police officer or firefighter; their life is constantly in danger. On the other hand, a manager in a demanding company may be at risk in another way.
I experienced this when I worked at Caltor. Once, I had to stay quite late solving a problem with a manager from another department. While talking about how late it had gotten, he told me it wasn't unusual for him to stay that late. He generally worked between 12 and 15 hours a day. But he wasn't the only one; the other managers did the same. And the general manager worked even longer, even on Saturdays and some Sundays.
Such a job should be economically profitable (of course, right?), but logically, interpersonal and family relationships, as well as moral values, will inevitably suffer. On the other hand, an administrative worker may not have a particularly exciting job or earn much, but they have the advantage of a fixed schedule and safe health (generally speaking, some jobs can be very stressful, of course).
Step 2: Choose your profession and/or hobby
Once you've defined your values, you must choose what kind of career you want to pursue and differentiate between two things: profession and hobby. The former is what feeds us, so to speak. The latter is what we like to do. Can it be both at the same time? Of course, that's the ideal. But you also have to be realistic: it won't always be possible.
This often happens in the sports/arts field. Someone might be very good at singing, playing soccer, painting, or dancing… yet, their job prospects aren't the best, unfortunately. Only a small number manage to become famous and rich through these means. In that case, it's worth considering another career option so you can try your luck in the meantime at what you love most.
Once you've decided on the career you want to pursue, you need to think about how to obtain it. There are cases where there's no other alternative than pursuing a university degree, such as medicine. Don't try to pursue it if you don't have a medical degree—you'll face serious problems and could even go to jail! But there are other careers with many options, such as computer science.
You should ask yourself: Is it worth studying a degree that will likely teach me a lot of things I won't be able to apply in my job? Would I do it just for the degree? What advantages would it give me? A higher salary? How much more? Also consider the time factor involved in studying. Most long-term degrees can take about ten years. Can you work full-time while studying? In many cases, that means working from 9 a.m. to 6 p.m., rushing to school, studying from 7 p.m. to 11 p.m., sleeping. Weekends, studying. In that case, where would the other values be? Would I have time to dedicate to them?
Third step: employee or entrepreneur
What do you think today's education best prepares you for? To be an employee or an entrepreneur? It's important to remember that the education system is the same as it was 100 years ago, when society as a whole has changed. Just as I was writing this book, I read about a concept I'd never heard of: the Prussian education system. It was as if I had a solution to a problem that had never made sense to me.
In old Prussia, at the end of the 18th century, there was an urgent need to find ways to keep people happy, as the French Revolution had just broken out, and they feared something similar might happen. So they offered something that at first glance seemed brilliant: free, public, and compulsory education.
But this system had a catch: it was a system to teach children and future adults to be obedient and accept orders without question. It was a resounding success in the sense that by the beginning of the 20th century, it had spread throughout the world. Business leaders gladly supported these ideas, as they allowed for highly efficient production lines and unquestioning workers.
Commonplaces such as age-based division, exams, grading systems, rewards, and punishments all emerged from this system. If a person is obedient, they will be able to complete not only primary and secondary school, but also university, and this is rewarded with a higher social status than others by allowing them access to better jobs than those who don't adapt to the system can aspire to.
But there's one thing in common across all teaching echelons: EVERYONE, without exception, teaches you to be a good employee, never to be a good owner. Who are the business owners? The people who broke the mold. Those who did things others called crazy. Those who sometimes dropped out of college or didn't even set foot in it (names like Thomas Edison).[1], Walt Disney, Bill Gates, Steve Jobs, or Henry Ford might suggest something to us). In schools, this is strictly condemned: there is one and only one correct answer. It doesn't matter if you thought of something original and surprising... if it's not what's in the books, it's wrong.
I remember that happening to me in high school, in physics class. I don't honestly remember what the subject was, only that I had come up with a formula called P/L. That formula gave the same result as the "official" method. I shared it with my classmates, and they all agreed with its validity. I showed it to the teacher, and he acknowledged the results… but told me I still had to do it the traditional way. Reluctantly, I did it correctly on the exams in order to pass.
Another serious mistake in education systems is that they encourage individualism. I remember a few years ago I was very upset with a classmate (I'm sure we've all had them) who was the classic climber, who didn't care about anything as long as he was in good standing with his bosses and got a raise and/or promotion. But then I started to think... What does school teach? What happens if I help a classmate with an exam?
I remember doing it a few times. I admit it wasn't the right thing to do. In fact, it was quite risky. If I got caught, I might fail the test even if I knew the answers. So, how can I expect to have cooperative coworkers if we're taught personal salvation and the idea of "others matter to me" in school?
Numerous studies have revealed that there are far better ways to learn than being forced into a graded exam, where a bad grade means embarrassment and a familiar slap on the wrist. These studies specifically indicated that, after two weeks, we only remember 10% of what we've read. If you had an exam recently, try to recall what you read. If a few weeks have passed, you probably won't remember a thing. How useful were the books I devoured for the history exams!
On the other hand, it's when we participate more actively, through games, movies, or other interactive media, that we learn the most. For example, how many of us have learned the flags of countries or capital cities while trying to capture Carmen Sandiego? Or learned the story of Joan of Arc from the movie or the Age of Empires campaign?[2]?
In general, working as an employee gives us a discipline that's often hard to find among self-employed individuals. It also allows us to learn and gain experience. Once we have these qualities, deciding to become self-employed can be a positive step, as it offers greater flexibility, which in turn also entails greater responsibility.
Step Four: How to Gain Knowledge
There are cases where we can significantly improve our job prospects, and not always by pursuing long-term degrees. For example, knowing a second language like English can open many doors. A gas fitter's license allows them to sign plans, which is more profitable than the actual labor itself. Certain certifications are also highly sought after in computer science, where the course is optional and you only pay for the exam. In a short time, you can apply for a job for which you had little chance.[3].
Also keep in mind that we live in the information age. You can find all kinds of information on the Internet, and it's usually free. And we're not talking about low-quality information. For example, take a moment to check out this website: www.edx.org. Here you can find courses from the most prestigious universities you can imagine. And many of these courses are free. You can also earn valuable certifications.
Let's not forget books either. They contain a wealth of information, and the internet makes it much easier to access them. Most careers are based on them, so take advantage of them and read them... remember that knowledge takes up no space.
Regarding the world of investment, a career I recommend in this book and consider mandatory as a second job, it's not necessary to have extensive knowledge or education. Some might think that being an accountant or an economics graduate is a requirement, but I don't think this is necessary. It may provide a small advantage, but no more than that. Nor is it necessary to be a mathematician or perform extensive calculations, firstly because there are calculators for everything on the Internet, and secondly, the calculations investors need are no more than addition, subtraction, multiplication, and division.
If this is your first book on investing, congratulations! Despite being a beginner's book, it has all the tools you need to get started. In fact, if you've managed to grasp the fundamental concepts we'll cover later, you'll know more than most investors. Of course, I recommend continuing your learning by reading several books on the subject and then researching on social media: sharing opinions about companies provides a wealth of knowledge to everyone involved.
Step Five: Don't Give Up
Getting to the company we want, the job, or the career we dream of takes time. And in that time, we'll have many failures. Don't give up; see mistakes as part of the learning process. Remember that behind every successful person, there are usually many failures. Look up the biography of Jack Ma, the founder of Alibaba, and you'll understand this point well. Don't let other people's negative comments discourage you, either. Keep going and never give up.
In conclusion, my advice is to carefully evaluate the advantages and disadvantages. There's no one-size-fits-all solution for every personal situation. If you're going to invest in education, which I strongly recommend, make sure it's worth it. Don't feel obligated to study for the sake of studying; you'll end up like the vast majority who waste time starting degrees only to never finish them. Remember, first, you must think about your values. Second, think about what you love. Third, decide whether you want to be an entrepreneur or an employee. Not everyone was born to be an entrepreneur, investor, or employee… it's important to be clear about that.
But more importantly, there's more to life than just being an employee. If you have an idea in mind, acquire knowledge and experience. Perhaps a job will help you gain these things. Think, think, and keep thinking about what you want to do with your life. Then, decide how you can obtain the knowledge you need. There are countless options, not just one, as many people think. It's not an easy decision, of course... and no one can give you that answer except yourself. And I almost forgot to remind you once again: DON'T GIVE UP!
As a bonus, you can watch two videos that go into more depth on this topic and learn more about the story of Alibaba's founder.
[1]According to his biography on Wikipedia, when he was just 8 years old, a teacher called him "sterile and unproductive." Seventy-five years later, he obtained patent No. 1093. His inventions include the incandescent lamp, batteries, the carbon microphone, and the electric power distribution network. Not bad for someone who was "sterile and unproductive."
[2]Created by Microsoft®
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