This quote comes from the book The Psychology of Money, written by Morgan Housel. The pursuit of respect and admiration is a fundamental human desire. However, many mistakenly believe that acquiring material possessions is the key to achieving it. This article explores why impressing people with possessions is not the path to genuine respect and admiration, drawing insights from Morgan Housel’s “The Psychology of Money.” We’ll delve into a relatable story, discuss the pitfalls of seeking validation through material items, and highlight the true sources of respect and admiration. Additionally, we’ll provide a stock to watch and investment advice for those starting their financial journey.
The Ferrari Story: A Lesson in Perspective
To further explain what this quote means, I will share a short story. One day, a man who has worked his entire life to buy his dream car, a Ferrari, goes to the dealership to pick up his new car. Once that man steps into his car and drives out of the parking lot, he feels euphoric. He is thinking to himself, “All these people seeing my new car must think I’m the best to ever do it.” As he is thinking this, a little boy who is obsessed with cars sees the new Ferrari at a stop light. The boy quickly pulls out his camera to take pictures as he admires the shiny new car. Not once does the boy think about who is driving the car, he thinks about the engine, the color, and the wheels. The man is obsessed with his new machine and is proud of the work he has accomplished. Which is great, he knew how hard he had to work to be able to get this car. Every time he walks past the car, he looks at it and is impressed by what he bought. This man will never realize that his purchase will impress him far more than it will ever impress anyone else.
This man who bought this car did something right; he bought the car for himself. He worked hard during his lifetime to buy his dream car. His purchase was not for anyone else until he was driving his car and thought about the impression that he made.
The Never-Ending Trap of Materialism
When a person has a mindset that new fancy things bring “respect and admiration,” it creates a never-ending mindset of wanting more. Once you have met one benchmark, you will reach for the next. After you buy a car to gain respect and admiration, you will reach for new things, such as a boat or vacation home. The pursuit of external validation through possessions becomes a cycle of dissatisfaction, as the fleeting high of each new acquisition fades, leading to a constant desire for more.
Finding Joy in Purchases Without Seeking Validation
I want to reiterate I am not saying that being proud of new purchases is a bad thing. I love buying new things that make me happy, such as concert tickets, new records for my record collection, or new clothes. These things bring me joy, and when I am enjoying my purchases, I am not thinking about other people. I one day hope to buy a brand new Rolls Royce, not to impress people but because I think it is a very good-looking car. To buy things that bring a person happiness is encouraged if you can afford it.
Earning Respect and Admiration: The Real Path
“If respect and admiration are your goals, be careful how you seek them”. This quote also comes from the book The Psychology of Money. If respect and admiration are what you seek, then buying things is not how you earn them. It comes from respecting and admiring others. This concept is like investing in the stock market, the only way to get something out of it is to put something into it. If you try to gain respect and admiration without giving people respect and admiration, you will never reach your goal.
The Illusion of Impression: Who Are You Really Impressing?
“No one is impressed with your possessions as much as you are.” If you are trying to gain respect and admiration by buying expensive things, you will never succeed. The only person you are truly impressing is yourself. Remember, no one is thinking about the man driving a new Ferrari; they are admiring the work of the man who built it. True respect and admiration stem from personal qualities like kindness, integrity, and accomplishments, not from the things you own.
MY STOCK TO WATCH FOR THE WEEK-Featuring Kate Hoffbeck
As we head into this week, the market saw a significant loss, with the SPDR S&P 500 ETF Trust falling 2.54% to a price of $580.32 compared to its price last week of $594. This week, there are many earnings reports, some companies to highlight are CrowdStrike Holdings, Broadcom, and Costco. This week, my stock to watch is Delta Air Lines (DAL), trading at a price of $55.05. Delta Air Lines operates under a full-service carrier (FSC) business model, offering a wide range of services to cater to various customer segments, including economy, premium economy, business, and first-class travelers. By offering a wide variety of services, Delta caters to a wide range of consumers. Delta focuses on operational Reliability by consistently ranking high for on-time performance and customer satisfaction. Delta also ensures high customer satisfaction by investing in modern aircraft, in-flight entertainment, Wi-Fi, and premium services. Also, by investing in new technology and streamlining processes, Delta is working toward maximum Operational Efficiency. Delta has also shown continuous improvement and an increase in revenue from $58.1 billion to $61.6 billion, which is a 6.1% increase. With this strong revenue growth, Delta has also increased its free cash flow from $1.1 billion to $2.4 billion, which is a significant increase of 118%. Delta is also maximizing the money it spends to operate, as Delta increased its operating expenses from $8.1 billion to $9.1 billion while also increasing its net profit from $14.1 billion to $15.1 billion. With a strong business model and strong financials, I think Delta has the ability for significant growth in 2025 and hope to see prices near $75.
RECAP FROM LAST WEEK STOCK PICK OF WEEK
Apple
Price at time of suggestion to buy-$247.22
Price Today-$235.93
Price down 11.29$ down 4.8%
First Steps into Successfully Starting Your Investment Journey
To start investing, you need a platform to invest with. My preferred platform is Robinhood; this is an app that gives the user the ability to buy stocks, bonds, options, cryptocurrency, and start an IRA. If you would like to start investing, visit this link.
Conclusion: Redefining Respect and Admiration
In conclusion, seeking respect and admiration through material possessions is a flawed and ultimately unfulfilling path. The admiration derived from owning expensive items is often superficial and fleeting, and it rarely translates into genuine respect. True respect and admiration are earned through personal qualities, actions, and contributions to others.
Leave a Reply