There’s a growing consensus of people, searching for an answer to today’s economic madness, who offer recommendations and support around the concepts of investing globally.
But we must question to what extent we should take the money that America gives us, and put it to use globally. This applies to corporate interests, and mission work globally too.
As a fact, the wealth gap by race, alone, is evidence that many people domestically are hurting today and need an economic opportunity.
The surge in discussions on nationalism are evidence that America is now wrestling with these concepts of globalization and its domestic consequences.
If there’s an expectation and a need for people to invest into you right now when you need it the most, how in the world could you take a large part of the wealth America entrusts to you, and invest it into people outside of America without taking care of ‘home’ first?
Many are also wrestling with these concepts. Asking themselves, “what can I do, to take care of Home, first?”
No more is it a necessary discussion than today, when GDP growth is at all time multi-century lows.
That said, as investors, we buy low and sell high. What to buy at all time lows?
In exploring investment opportunities, we have been buying and investing into Black America. No other group in this country is lower, and the ROI is significant when considering their potential when given the opportunity.
For hundreds of years, Black Americans were enslaved – provided free labor with no economic opportunities.
Then during the Great Migration, significant economic progress was made for Black American households.
However, that progress was not sustained. After the Civil Rights Acts were approved in the 60’s, the wealth gap has only WIDENED by race.
In essence, Black Americans have made no progress since the Great Migration of the 20th century! It begs the question, what exactly were white people doing that black people were not doing after the Great Migration?
Post the Great Migration – which ended around 1970 – the biggest gains were from corporate equities. Stocks.
The stock market went no where from 1962 through 1982.
The 401k was approved legislation around 1978.
Then over the next 20 years, starting around 1980, the AVERAGE company in the stock market ran up over 10 fold – over 1000%.
Above average companies like Coca Cola ran up in price from under $1 to above $40 per share = 40 fold growth. Four times the average…
FYI, Median rent in 1980 was $243 monthly. If you had only taken the equivalent of ONE month’s rent and annually invested into a company LIKE Coca Cola for the next 27 years, you’d would have $10m by 2007.
Investing annually the equivalent of six month’s rent starting in 1980, into a company like Coca Cola for the next 27 years, would produce $60m in ownership by 2007.
Largely, Black Americans did not participate in that run up. Proof of this: the wealth gap by race wouldn’t be as large as it is, if they had.
Why Black Americans did not participate in the 20+ year stock market run up starting around 1982 and the 1978 401k legislation? We’ll have to investigate this more deeply. But largely, it just never happened.
One reason… It is very likely, that Black Americans disproportionately did not get to participate in the 401k plan, because they were up to 3 times more likely to be unemployed. These disparities by race persist through today.
When employment has been available, compensation was and still is less.
This emphasizes even more why a new economic development plan may be necessary, that does not depend upon principles of ‘inclusion’.
Consider, however, if Black Americans DID participate in future price run ups over the next 100 years?
What if Black Americans could participate or even lead another type of ‘Great Migration’?
This is why we’re so bullish on America, and specifically Black America.
Other countries simply don’t have as much potential as Black America has.
The World Bank has hundreds of economic indicators. But largely, they can be classified into what a country does with its land, people, and technology.
Other countries do not have access to the technology, the educated workforce, and the amount of ‘livable land’, to which we have access in America.
They don’t have the investment infrastructure – functioning stock markets that allow for equal access to corporate dividends issued by publicly traded companies.
Many don’t even have good electricity.
The Investment objective isn’t only to buy low, but buy something low that has large upside and growth potential.
Sure, it’s debatable. But we believe, there is no other group IN THE WORLD who has more upside potential than Black America, today.