A life of purposeBy Sam Hunt

A life of purpose By Sam Hunt

sam hunt

I am often asked in social settings about the performance of various stocks or indexes and I try to respectfully refrain from engaging. The real question to ask is ‘what level of return do I need to fund my goals and objectives’ rather than comparing returns to some arbitrary investment.

To understand the level of return you require, you need a strong sense of purpose i.e. what is really important to you and to those you care about?

Warren Buffett is arguably the greatest investor the world has known. His company, Berkshire Hathaway, has generated a compound average return of 20% per annum from 1965 to 2017 compared to the S&P 500 which generated a ‘lazy’ compound average return of 10% per annum over the same period.

Interestingly and what seems to get missed by the media is that over the past 10 years to May 2018, Berkshire has underperformed the S&P 500 by an average of 2% per annum -illustrating that even the greatest investors have a hard time ‘beating’ the market on a consistent basis.

So, what will Buffett’s legacy be once he leaves this mortal coil? I believe that his greatest legacy is his pledge to donate 99% of his wealth during and after his lifetime to the Bill & Melinda Gates Foundation.

In contrast to this wealth, Buffett lives a very humble existence. His strong sense of purpose has allowed him to focus on the work that he loves and to invest time with those he loves knowing his financial legacy will benefit millions of people for generations to come.

It is important to take time out of our busy lives to reflect upon our purpose and what’s important to us.

Are we spending enough time with family and friends, on our health and spiritual life? Do we have the lifestyle we want and is our work meaningful to us? If you are not ticking all the boxes are there areas in your life you can delegate or eliminate completely?

The best things in life are not things…