The Long Game for Long Term Wealth

The featured story in the September 29th issue of Business in Vancouver describes the First Nation’s long time horizon for project developments. This type of thinking goes beyond real estate into a cultural worldview of patient diligence.

In the ancient past, a ruler would reign for decades or a dynasty for centuries. At the peak of the Roman empire, their engineers built more than 250,000 miles of roads that were essential for commerce. Long term planning creates lasting legacies.

Short term thinking dominates the investing landscape in our modern world. It is further exacerbated by 2 to 4 year political terms. Business cycles revolve around quarterly earning reports. Companies focus on short term gains to please investor sentiment. If quarterly earnings drop, investors are likely to get spooked and move their money into another investment to capitalize on quick profits in short turnaround cycles. There is little incentive for companies to focus on long term growth from which to build long term wealth.

Ironically, our desire for independence leads to isolation that leads to insecurity. We operate at our best when we are interdependent. Actually, we can’t operate anywhere in the world without interdependency on others. This is the key to success. The many share the load; the many spread the risk; the many share the reward.

When considering an investment, the single most important element is values alignment. If there is a misalignment in core values, any relationship will fail, not just real estate ventures. Delivering the long game for long term wealth requires a values commitment to consistency, dependability, and reliability.