This Friday’s feature is again educational and I’m hoping to help reverse a trend in urban culture of buying vs. owning. Below is an example from teacher Soso Dede on an instance in creating wealth that we have……that we squander. Exhibit A. Tennis Shoes.
This was a great story and as a former math teacher…What a GREAT LESSON!!!!
His mom taught him…How about you buy a SHARE of Nike before you buy a PAIR of Nikes!!!
That’s pretty deep… My thinking has just changed…I invest in the Stock market but I’ve never thought about it in this fashion…
I know people that have 20 pairs of Nikes or Jordan’s … that they paid anywhere from $100 to $300 for…
So let’s do the math here – Let’s say I bought one pair of $150 Jordan’s each year since 1998 the year I graduated High School…I would have 17 pretty dope worn out pair of Jordan’s(because other than Jordan’s most Nike’s don’t become more valuable particularly shoes that you have worn). At $150 a pair plus tax I would have spent approximately $2,805.00.
But if instead I had bought shares of Nike let’s see how that would have played out:
1998: $150 = 13 Shares of Nike @11.12 per share
1999: $150 = 9 Shares of Nike @15.85 per share
2000: $150 = 13 Shares of Nike @ 11.00 per share
2001: $150 = 14 Shares of Nike @10.15 per share
2002: $150 = 11 Shares of Nike @13.18 per share
2003: $150 = 10 Shares of Nike @14.00 per share
2004: $150 = 8 Shares of Nike @ 16.92 per share
2005: $150 = 7 Shares of Nike @ 20.95 per share
2006: $150 = 7 Shares of Nike @ 19.00 per share
2007: $150 = 5 Shares of Nike @ 27.00 per share
2008: $150 = 5 Shares of Nike @ 29.00 per share
2009: $150 = 5 Shares of Nike @ 27.00 per share
2010: $150 = 3 Shares of Nike @ 40.00 per share
2011: $150 = 3 Shares of Nike @ 44.32 per share
2012: $150 = 3 Shares of Nike @ 47.21 per share
2013: $150 = 2 Shares of Nike @ 63.00 per share
2014: $150 = 1 Shares of Nike @ 95.50 per share
2015: $150 = 1 Shares of Nike @ 122.97 per share
So at the end of this time frame I would own 120 shares of NIKE @ $122.97 that could wakeup tomorrow morning and sell for $14,756.40.
Now lets see choice A (which most of us took, because the truth is this really isn’t about a pair of NIKEs). This could be whatever you spent on that is now WORTHLESS and that you probably don’t have or even use today!!!
Run whatever your pair of JORDANs is through this machine:
1. You smoke
2. You drink
3. You was at the club
6. The latest Cell phones
7. WHATEVER YOU WANT…
The point is that Choice A got you 17 pair of worn out shoes and a deficit of $2,805.00
and choice B got you AT LEAST $14,756.40 (I was being very conservative with my calculations)
Take your “JORDAN” and see how much money you “left on the table!”
I promise you this… If you KNOW better YOU SHOULD DO BETTER…
I am going to start INVESTING MORE MONEY IN THE MARKET and SPEND less on some of my “gotta have things” and I’m going to raise my kids to THINK and DO the same!!!
#BuildWealth #KnowBetterDoBetter #LeaveAnInheritance