What Could Be: Investing Takes Optimism
It takes an optimist to be an investor—that’s what Dr. Daniel Crosby, author of *The Soul of Wealth*, reminded me of this week. Investing is inherently forward-looking, grounded in the belief that tomorrow will be better than today. This optimism prompts us to ask: *What could be?*
When envisioning a family fortune, I don’t just see it as it stands today but as what it might become over time. Compounding can transform financial wealth into a multiple of its current magnitude. However, while the potential opportunity is meaningful, so are the threats; time and inflation can erode the purchasing power of even the greatest financial legacy. A million dollars isn’t what it used to be—and likely won’t hold the same value a decade from now. Fortunately, we can make money work for us, turning it into an ally on our journey.
The same principle applies to stock investing. A static view might see only a momentary bargain—a "50-cent dollar.” A dynamic view invites us to seek a "multi-bagger," as Peter Lynch taught us, or even a "100-bagger" as Thomas Phelps and Christopher Mayer envision (see sources below). When we look beyond today, we can imagine a business that could multiply in value. Of course, not all investments thrive over time; some businesses may lose value. We seek those that grow more valuable with time.
But ultimately, it’s the people behind the financial wealth—the family, each individual with their own dreams, needs, and goals—who define the true potential. Younger family members will head to school, start careers, launch businesses, and follow their passions. Others may reinvent themselves later in life or prepare for retirement, bringing the family’s vision full circle and beyond.
Dr. Crosby quotes Helen Keller in his book, who wrote: “No pessimist ever discovered the secrets of the stars, or sailed to an uncharted land, or opened a new heaven to the human spirit.” Optimism inspires us to see the grand vision of a family fortune, a promising stock, or a bright future. And maybe, just maybe, it’s the optimism that compels us to invest today for the rewards of tomorrow and appreciate what could be.
Happy Investing!
Bogumil Baranowski
Sources of inspiration:
Crosby, Daniel. The Soul of Wealth, 2024
Phelps, Thomas William. 100 to 1 in the Stock Market, 1972.
Mayer, Chris. 100 Baggers: Stocks That Return 100-to-1 and How to Find Them. 2015
Disclosure:
Blue Infinitas Capital, LLC is a registered investment adviser. The information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.