The Unexpected Super Investors
Few of us celebrate the 4th of July by running rates of return, but we should. Setting aside the hotdogs, pie and fireworks, Independence Day is a recognition of gutsy, long-term investment decisions made nearly 250 years ago. And if we survived those critical initial decisions, then we had to have the courage and fortitude to reinvest the proceeds so future generations could benefit from this democratic and capitalistic experiment.
It worked, and it continues to work. It may not be a straight line and it may not be obvious. But it has been the greatest investment in the history of the modern world.
Today, there are nearly 3 million men and women that serve our nations military with more than 177,000 of them in Texas. They quietly serve to protect and promote freedom, capitalism and democracy.
Since the Declaration of Independence was signed, there have been millions of Americans who stood tall to give us the life we have today. Many of these protectors were shot at, disabled or killed years before I was a twinkle in my parent’s eyes. There have been, and will continue to be, easier ways to make a living.
The result of this massive investment is the largest economy in the world. Although we are only 4% of the world’s population, the US is 25% of world GDP (total sales). Our GDP is more than 50% larger than the second-place nation. If you isolate Texas by itself, our GDP is $2.4 billion, making it the 8th largest economy in the world.
However, we don’t just sit on the cash. We are an incredibly generous nation. In times of crisis—whether natural disasters, terrorist attacks, or pandemics—Americans rally, demonstrating resilience, compassion, and a commitment to the common good.
In fact, we are the most financially generous country on the planet. We donate approximately 2% of GDP to charity. That means Americans give $500 billion per year to philanthropy. That also means Americans donate more to worthy causes than 140 countries produce from their total GDP. That is staggering!
Despite its diversity, America remains united by shared values. The Constitution, with its emphasis on individual rights and democratic principles, binds us together.
Recognizing these opportunities do not exist elsewhere, we are the top destination for immigrants. In 2022, 2.6 million people legally immigrated to the US.
America’s promise of upward mobility draws millions seeking a better life. From the early settlers to today’s dreamers, this nation provides a fertile ground for ambition.
The American Dream, a belief that hard work and determination can lead to success, has inspired generations. Whether it’s starting a business, pursuing education, or achieving personal goals, opportunity abounds.
Obviously, there is room for improvement, and we always want more. It is easy to dwell on the negatives. However, don’t let that strip you of the ability to look back and see how good things are and how much progress has been made.
The investment of a free enterprise system is not perfect or equal. However, it is the platform that delivers the most opportunities. The system our founding fathers built remains the envy of the world.
This rising tide lifts all boats. Assume you invested $1,000 in the stock market a century ago. Despite numerous pullbacks, businesses have grown better than 10% per year. Today, that investment would be worth more than $21 million simply by riding the wave of capitalism!
Our founding fathers knew that freedom is not free, nor is it a one-time investment. All you must do is look to Ukraine or Israel to see what an alternate reality could look like.
The 4th of July will have special meaning for me this year. My Godson, Camden, has chosen to follow so many other great Texans in service of his country.
In recognition of this, a thank you to, Private Camden Quoyeser and the men and women of Alpha Battery 1-78FA, and all our armed services. Although you may not realize it, you are the next generation of super investors. You are the ones who keep us safe so that democracy, freedom and capitalism remain strong.
Happy Freedom Day.
Dave Sather is a Certified Financial Planner and the CEO of the Sather Financial Group, a fee-only strategic planning and investment management firm.
Private Camden Quoyeser Alpha Company 1-78 Field Artillery
