Perhaps without exception, every dollar that you have in your possession originally was the product of your labor. That is significant. It represents your own time that could have been spent doing anything you want, but instead, you worked. Not only did you work, but that money is a function of your surplus after paying taxes, housing, food, and the myriad other costs that are part of daily living. There is an almost sacredness to the pool of capital that is your surplus because it is just about the only thing in the world that can have the capacity to make you richer while you sleep.
With this in mind, I obsessively focus on things that can impair capital or cause it to be lost entirely. If an investment fails, it usually does so for one of three reasons: (1) the good or service fails in the marketplace; (2) the … Read the rest of this article!
The post Respecting Capital first appeared on The Conservative Income Investor.