Freedom, risk, and lessons in money

Here I am again, and I know many of you are waiting to find out what happens next. Hahahahahahhaah!

But I’m afraid I have to disappoint you. Today, you’re going to get to know the writer a little better! What kind of guy is this who dares to just start a column like this? Where does this bird come from, and what does he want?

In short, I come from Germany — the land where the power never goes out — and what do I want? I want to tell you a story — my story. So, let’s call me Fred. I was born in Germany two weeks before the lights literally went out for a large part of the German population because the Wall (the Berlin Wall) came, and the East was ruled by the Soviets. Gotcha? Now quickly Google when that was. That’s right, 1961! That’s where I was born, though in the free West. I grew up without internet or a phone, but with plenty of bruises and ripped pants. I loved driving my parents crazy, but luckily, I soon got some backup for that — a brother. That’s what you call a brother.

We grew up very sheltered and loved by our parents. Even today, I say my mother was the best — of course, you say that too, and you’re right, mothers are always the best! My father, on the other hand, was different. Every allowance was a battle, and by Wednesday, we were already figuring out how to get more on Saturday. But he always had only one thing to say: You have to earn more! That sentence stuck with me because it was always true. I still remember the driving test — GREAT! We had to pay for that with our savings, too. In return, he said: You’ll get your first car from me. Well, our eyes widened, and what did we get? A rickety VW Beetle, but it ran, and our friends knew how to fix it up.

Why am I telling you this? Because I learned at a young age that performance is rewarded, and that was a good thing. Another episode involved having the advantage of working in my parents’ company. I was paid according to performance and time. So, on Fridays after school, I’d head straight there and get to work. Saturdays brought in the pay, and Saturday night was ours, but only until Sunday, when we were sick from partying and didn’t feel like doing anything. As a — or so I thought — educated student, the equation arose: working makes you sick! I charitably omitted the part in between, the drinking. But that still didn’t add up, and the question grew in me: What would happen if I saved the money and spent Saturday nights differently? Thought it — did it. I tried it for a while, and lo and behold, my bank account grew. WOW, I thought, this is more fun.

I learned very quickly that less can be more, and another thing: I felt better when I saw my friends blowing their money. But all of that happened in freedom.

Here’s another reminder (not from the editors): restraint means growth.

By chance, which I won’t mention here, I met a man who opened up a whole new world to me: the stock market. I listened to everything he had to say, read everything about it, and already felt like a stock market guru in theory, so it was time to put things into practice. I withdrew my first DEM 500 (equivalent to PHP 18,000 today) and INVESTED — AND LOST half. My God, I thought, I might as well go back to drinking. NO, don’t worry, concerned readers, I didn’t. I also quickly learned that this was just tuition and that there was, and still is, a huge difference between theory and practice. I kept investing and investing, sometimes having bad luck, sometimes good. I read books and learned two “words of wisdom.”

A banker asked a speculator, “If you had three sons, what profession should they pursue?”

The speculator replied: “The first would be a lawyer, the second a doctor, and the third a speculator to support the others.”

The second “word of wisdom”: “Those with a lot of money can speculate, those with little money should speculate, and those with no money must speculate.”

Note: André Kostolany (both) — lest I get sued, my lawyer is reading along.

This means that I have ridden the path of risk my whole life, but always calculated risk. Never have other people ruled over me, never have I had to endure corruption holding me back, and never have I gotten bruises for fighting for fundamental rights. I learned from Benjamin Graham the wonderful saying: “Freedom is the highest dividend of investment.”

Of course, I also went to high school and then studied something sensible. I then pursued a solid career, but the speculator always remained within me.

What I want to say to my dear readers is that not every foreigner is a Rockefeller with pockets full of money. Many have worked hard, very hard, and sacrificed a great deal. Think about it.

See you soon,

Your “Fred”