The traditional investment thesis is used by the world’s smartest investors.
It outlines the assumptions supporting an investment opportunity. But in our lives, we make investments constantly. Yet most of which are made without a supporting thesis.
We invest in our careers, relationships, skills, hobbies, even which podcasts we consume.
These are all investments driven by our view of the world and flimsy assumptions.
But have we ever listed out these assumptions to see if they actually make sense? Most likely not. But the ROI on this activity might just change your life.
Here are the four categories to create a life investment thesis.
- Macro Trends and Observations
- Catalysts for Personal Growth
- Optimizing for Fun
- What Don’t I See?
Step 1: Macro Trends and Observations
Where is the world going and how am I evolving with it?
- The world continues to move digital (software, crypto, remote, NFTs, etc.)
- The average millionaire has 7 income streams (dividends, earned income, rent from RE, royalties, capital gains, profits from owned business, interest)
- Most entrepreneurs and new businesses started as something completely different that didn’t work. But that led to what did work.
Step 2: Catalysts for Personal Growth
What are the biggest opportunities for my personal growth?
How do they tie to where I want to go?
- Writing (newsletter/blog/Twitter) → increase surface area for serendipity
- Exploring new side biz (consulting, sticker biz, etc.) → financial freedom
- Rereading 4-Hour Workweek → 80/20 principle & financial freedom
- Commit Action Coaching → accountability and increased output
- Ship30for30 → writing
Step 3: Optimizing for Fun
Am I leaving enough space for fun?
Remember, this often leads to the best returns. What just sounds like fun to me?
- Interview podcast about how people started and the smallest inputs that led to biggest outputs
- Connecting with people on Twitter or maybe starting fun TikTok videos
- Traveling and living in different countries while working remotely
Step 4: What Don’t I See?
Get feedback from other people in my life.
Share with best friends or family and tell them how much I value their perspective.
Questions to ask:
- Can you give me an example of something I might not see?
- What does my life look like from your perspective?
- What’s one thing I should do more of?
- One thing I should do less of?
Now we have a simple playbook to make tactical investments in the core areas of our life.
As new information comes available we just update the life thesis.
Keep it simple and keep it fun. Most important is getting started.