‘Expecting the world to treat you fairly because you’re a good person is like expecting a bull not to attack you because you’re a vegetarian.’

—Dennis Wholey

 

My kids are reaching an age where they’re thinking about their future careers.

It’s not easy these days, with entire sectors in flux due to demographics, digitisation, and climate change.

So I’ve been searching for material that may aid their thinking.

As it is said, thoughts become words, words become actions, actions become habits, habits become character, and character determines destiny.

One book I read recently has provided the most compelling advice on the topic.

The Wealthy Gardener by John Soforic is a series of father-to-son lessons. Its simple logic is compelling.

John comes from a blue-collar background in Pennsylvania. He was the first in his family to go to college — where he obtained his degree to become a chiropractor.

Faced with $200,000 in student debt and a young family to support, he decided to pursue financial independence. Setting a goal to become financially free by age 50.

Combining his chiropractor business with investment, John achieved his goal. His book combines the extensive research he did that enabled him to achieve this goal. His personal story. And an analogy of a wealthy vineyard owner who faces further life challenges.

 

 

What is the most compelling lesson of The Wealthy Gardener?

 

I see a lot of people who expect life to be problem-free.

Often, they’ve been prosperous and comfortable for a long time, forgetting the adventures that led them there in the first place.

When problems do come — as they always will — they get upset. Some become anxious or depressed. Others lash out into unnecessary conflict.

If there’s one vital lesson for kids, for anyone considering tomorrow, it is this:

 

 

John Soforic says that a life of small problems produces little income. And that an expectation of daily problems is the best disposition for work.

For kids planning their careers, developing the knowledge and expertise to solve magnificent problems is surely the key to a prosperous future.

Entrepreneurs that create businesses that solve critical problems for many people receive the highest rewards. Look beyond any major, recent company and you may see millionaire or billionaire founders.

In creating their businesses, these entrepreneurs face the greatest problems. And often sacrifice years of their life to do so.

As you move down the wealth and income tree, you’ll notice one thing. The bigger the problem solved, the higher the pay. This explains why the most specialised professionals in medicine and finance command the largest salaries.

Though there are anomalies. Arguably, teachers solve the greatest problem of all — training the next generation. And they should likely be rewarded much more.

 

What story resonates with you most from The Wealthy Gardener?

 

As John Soforic reached success in his business and his investing, his life was by no means trouble-free.

In fact, at this pinnacle, he faced an existential crisis, where he risked losing everything!

As a chiropractor, his entire business depended on payments from insurance companies for patient treatments. He had been pushing his quotas.

A dreaded audit arrived, threatening return of financial sums that could have destroyed his business and drained his investments.

Sometimes, John says, you just have to go through adversity that has no upside. You have to go through a difficult process.

The key lesson was that, through this process, there is one thing adversity cannot touch but will strengthen. If you allow it. And that is the inner peace and clarity of your mind.

John did get through his audit. Remarkably, he was able to come out financially unscathed, with only small modification to his approach required.

I recall a similarly difficult process owning a leaky property in Europe. We faced adversity with no upside. Only the potential for heavy financial loss.

But we got through it by working through each step clearly and logically. Taking advice as needed.

I asked my wife if she regretted this difficult period. And she said not at all. Although we lost some money, the experience strengthened us in priceless ways.

I agree. That is not to say I would wish such adversity on anyone. Nor were we calmly in control when it hit us. At times, it was terrifying.

John’s lessons are an important reminder. Those who can handle problems are most fit to handle wealth. And a ready mind is a steady mind.

 

 

What can investors in the markets learn from this book?

 

Seasoned investors in the markets understand problems. Problems mean the share prices of certain companies may be temporarily discounted. Providing the impact of problems is understood, they can help investors build a portfolio that grows wealth.

We didn’t completely understand the problem of Covid-19 when it hit the world in March 2020.

Our first question was: ‘How can a business operate when it is locked down?’

Our second question: ‘Do we own any companies that could be in trouble soon?’

Yet the problem was an opportunity. And we did deploy some funds. Particularly in certain property companies that have gone on to more than double their share price, while paying good dividends.

In that case, our calculations missed the level of monetary and fiscal support central banks and governments would provide. If we’d anticipated the levels now seen, there would have been reason to invest a lot more.

The lessons remain for investors. Problems create opportunity. Opportunity creates wealth.

So, good luck with your problems!

 

Regards,

Simon Angelo

Editor, Wealth Morning

 (This article is general in nature and should not be construed as any financial or investment advice. To obtain guidance for your specific situation, please seek independent financial advice.)