Invest like a child

My kids get money from relatives from relatives for Christmas and birthdays that they put in their bank accounts. They don’t need it now so I have bought them units in the S&P 500 through my account. They’ve done quite well with one holding up 10% and the other up 35%. They don’t need the money now, so they don’t really care.

My son is 16 years of age. It is likely that he will be looking for his money back in within the next 6-8 years, probably to buy a car. And his attitude to the returns of the S&P 500? He just lets the markets do what they do. He is more interested in playing rugby and going out with his pals. My 13 year old daughter has unknowingly adopted the Warren Buffett approach to investing of “lethargy bordering on sloth”.

Yes, as adults, the numbers are bigger and the outcomes more important but our ability to influence the stock market is the same as that of a child…nil.

 

Invest like a child, get on with your life and let the markets do with the markets do.

 

Steven Barrett

22 April 2024